Retail Sector in Hong Kong to Trade Larger Cryptocurrencies

Hong Kong watchdog to allow trading of large cryptocurrencies.
SFC to allow trading of these massive cryptocurrencies only on licensed crypto exchange platforms.
Huobi Global has applied for a crypto trading license in Hong Kong.

Hong Kong, the land of the rising sun, will allow the country’s retail sector to begin trading cryptocurrencies with the highest market capitalizations, such as Bitcoin (BTC) and Ethereum (ETH).

The Hong Kong Securities and Futures Commission (SFC), according to sources familiar with the report, would only permit the trading of these massive cryptocurrencies on cryptocurrency exchange platforms that have been granted licenses by the government of Hong Kong. Also, these cryptocurrency exchanges are required to take the safety of their customers into consideration, which requires them to check off certain boxes including exposure restrictions and risk profiles.

Based on the SFC’s clarification, the major cryptocurrencies would be accepted in the country in two distinct formats. Independently maintained indexes are one of the options accessible. On the other hand, one’s feet should have been firmly planted in the more traditional banking system. The agency also stated that the consultation session will continue until March 31st of this year.

As per the recent proposal, all trading platforms that want to apply for a license “should begin to assess and change their systems and controls in order to prepare for the new regime.” According to Bloomberg, an SFC representative stated that Hong Kong platforms will most likely list Bitcoin and Ethereum.

In other recent reports, Huobi Global has applied for a cryptocurrency trading license in Hong Kong. This is a significant move for both the Hong Kong and Huobi exchange platforms, demonstrating their dedication and preparation for legislation in order to increase cryptocurrency acceptance across the country.

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Munene Kelvin

Kelvin enjoys writing about cryptocurrency and blockchain. He started blogging in 2019 and switched to cryptocurrency in 2020. Kelvin is interested in technology, football, chess, and Defi. He wants decentralization to benefit everyone on the planet.