In an thrilling flip of occasions that alerts the shifting panorama of digital finance, Hong Kong’s Securities and Futures Fee (SFC) is all set to interrupt down boundaries for retail traders within the crypto market. Nonetheless, there are specific strings hooked up.
The SFC revealed this revolutionary shift in a daring announcement on Might twenty third.
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As per the brand new directive, licensed digital asset buying and selling platforms which might be keen to stick to the SFC’s proposed pointers are invited to use for a license.
These pointers embody quite a few very important aspects of digital asset administration, reminiscent of cybersecurity, asset custody security necessities, and segregation of consumer belongings, amongst others.
SFC’s CEO, Julia Leung, emphasizes the significance of such readability in regulatory expectations, highlighting that such adjustments are of “key” significance in fostering a accountable and progressive atmosphere for improvement.
Hong Kong’s complete digital belongings regulatory framework follows the precept of ‘similar enterprise, similar dangers, similar guidelines’ and goals to offer strong investor safety and handle key dangers.
It’s anticipated that the new pointers are set to be applied in lower than two weeks. Nonetheless, to today, the SFC hasn’t greenlit any digital asset buying and selling platform to cater to retail traders. The regulator reportedly acquired 152 written submissions in the course of the session interval.
Furthermore, the SFC guarantees to implement “various strong measures” for the safety of retail traders. This consists of stringent standards for token due diligence, good governance, and enhanced suitability in the course of the onboarding. Full disclosure can also be anticipated as part of these measures.
With the brand new pointers, the SFC goals to stability innovation and danger, making certain a strong and dependable crypto atmosphere. Nonetheless, solely time will inform how this transformative step shapes the crypto ecosystem in Hong Kong.
Initially of Might, FinTech Affiliation of Hong Kong (FTAHK) chair Neil Tan revealed that Hong Kong is unbothered by different nations’ hesitations, pushing ahead with plans to permit licensed crypto exchanges entry to retail buying and selling.
