- The new guidelines will provide support to crypto trading platforms that offer trading services to retail investors on June 1.
- The regulatory framework for crypto exchanges received more than 150 responses during the public consultation process.
Several countries worldwide are currently working towards formulating a crypto regulatory framework. According to a Bloomberg report, Hong Kong’s financial regulator-Hong Kong Securities Futures Commission (SFC), is all geared up to release cryptocurrency exchange licensing guidelines next month.
As per SFC CEO Julia Leung, the new guidelines will provide support to crypto trading platforms that can offer trading services to retail investors on June 1.
Leung further added that the regulatory framework for crypto exchanges received more than 150 responses during the public consultation process.
Reportedly, DFC is also currently working on carrying out a range of trial initiatives to evaluate the benefits of digital assets and their potential uses in financial markets. These include exploring the tokenization of green bonds and working on creating a Hong Kong-specific central bank digital currency (CBDC).
The latest development comes amidst the SFC proposing that the city “allow all types of investors, including retail investors, to access trading services provided by licensed VA [virtual asset] trading platform operators.”
The new regulatory framework the city is designing is expected to provide the same degree of market recognition to cryptocurrency exchanges as the one currently applicable to traditional financial institutions.
Hong Kong’s latest measures are all geared towards making the nation a global crypto hub. Last month, the region’s Secretary for Financial Services and the Treasury, Christopher Hui, said that the region had received interest from more than 80 companies wanting to set up shop in Hong Kong.
Local media has earlier reported that Hong Kong’s efforts to establish itself as a leading cryptocurrency hub in the region have enticed a steady flow of business executives from mainland China who are interested in exploring opportunities in the crypto sector. These include Chinese securities companies as well as banks that are interested in allowing clients to trade Bitcoin(BTC) and Ethereum(ETH) on licensed exchanges.