Hong Kong has unveiled a plan to permit particular person traders to commerce digital tokens equivalent to bitcoin and ether, a serious step in its bid to grow to be a crypto hub in a coverage that defies the crackdown within the US.
Particular person traders will be capable to commerce bigger cash on securities-licensed exchanges, which can present safeguards equivalent to proficiency checks, danger profiles and affordable publicity limits.
The company didn’t specify which large-cap manufacturers could be eligible for retail traders. Cash should be included in not less than two acceptable, investable indices from impartial suppliers, considered one of which will need to have expertise in conventional monetary disciplines.
In late October, Hong Kong promoted a crypto stance as a part of a broader effort to rebuild town’s credibility as a monetary heart. Officers purpose to be taught the teachings of final yr’s $1.5 trillion digital asset meltdown and a string of worldwide bankruptcies, such because the collapse of the FTX trade, to create a binding regulatory framework.
The session paper doesn’t specify particular crypto indices as a reference level for a taxonomy of eligible tokens. Exchanges monitor listed property to make sure they’re out there for buying and selling by particular person traders.
The federal government has already allowed exchange-traded funds to put money into CME Group, Bitcoin and Ether futures, and this month offered the primary digital inexperienced bonds.
Digital asset executives are more and more drawn to the pleasant coverage positions of locations like Hong Kong, Dubai, and Europe as crypto searches move into the US cloud, the nation’s place as the middle of the trade.
Houbi International extends in Hong Kong
Crypto trade Huobi International applies for a crypto buying and selling license in Hong Kong and launches a brand new buying and selling venue.
Chinese language crypto and blockchain-related shares surged. Digital asset agency OKG Expertise Holdings rose 22.52% in Hong Kong. Crypto platform operator New Huo Expertise Holdings superior 12.52%.
Hong Kong’s ambitions nonetheless face many obstacles, together with a downturn within the digital asset trade that has reduce hundreds of jobs. Crypto markets have solely partially recovered from the 2022 bust.
Firms could delay making scarce investments till the contours of Hong Kong’s political panorama grow to be clearer.
