Hong Kong Approves Some Cryptocurrency Trading: Which Tokens Made the Cut?
Hong Kong has introduced new cryptocurrency trading regulations, and after the new rules come into effect, retail investors can now trade selected cryptocurrencies.Original Title: Hong Kong Approves Select Crypto: Which Tokens Made The Cut?
Authors: David Marsanic, Stefan Trapp, Ciaran Lawler, DailyCoin
Translation: Shenchao TechFlow
Hong Kong has introduced new regulations for cryptocurrency trading, with only a few currencies meeting the standards. Among them, Bitcoin, Ethereum, and Litecoin are approved for trading.
In contrast to the crackdown on cryptocurrencies in other parts of Asia, Hong Kong has taken a different stance. After the new regulations take effect, retail investors can now trade selected cryptocurrencies.
The new regulations from the Securities and Futures Commission (SFC) of Hong Kong will come into effect on June 1, 2023, allowing retail investors to trade certain cryptocurrencies. However, these currencies must meet certain strict standards to qualify for trading.
So far, only ten cryptocurrencies meet the standards, including Bitcoin, Ethereum, and several popular altcoins.
Standards for Cryptocurrency Trading in Hong Kong
To be allowed for retail trading, cryptocurrency tokens must meet the SFC's strict regulations. First, the tokens must have at least 12 months of regulatory compliance. During this period, the projects to which these tokens belong should not be subject to any criminal charges.
On the other hand, these tokens must be listed on at least two major independent investment companies' investable indices. Tokens that do not meet these requirements will not qualify for trading.
Currently, the tokens that meet the standards include: Bitcoin, Ethereum, Litecoin, Polkadot, Bitcoin Cash, Solana, Cardano, Avalanche, Polygon, and Chainlink.
Why Stablecoins Are Not Allowed in Hong Kong
Interestingly, the SFC currently has no plans to allow stablecoins, citing ongoing uncertainty surrounding them.
This new initiative marks an important step in the development of cryptocurrency in Hong Kong. Through this selective approach, Hong Kong aims to strengthen its position in the global cryptocurrency market while maintaining strict regulatory targets.
On the Other Hand
The strict standards for token selection mean that many cryptocurrencies will not be accessible to retail investors in Hong Kong. Given the increasing popularity of stablecoins, excluding them from the approved list may result in missed opportunities.
Why This Matters
For retail investors in Hong Kong, this development provides an opportunity to enter the cryptocurrency market. The increased adoption rate will also have a positive impact on the overall cryptocurrency market.
