Hong Kong finalizing retail crypto assets list.

The Securities and Future Commission, the regulatory body tasked with overseeing securities in Hong Kong, announced its plans to shortlist a set of crypto tokens that it would permit for trading in the retail segment. The intentions were made public by SFC’s chief executive last Wednesday. The move has been welcomed by the global crypto community, with the general consensus being that the relaxation in regulations will be beneficial for crypto start-ups. 

Also Read: Hong Kong to Proceed with its Global Crypto Hub Plans

The Heightened Focus on Investor Asset Protection

With global watchdogs and crypto thought leaders voicing the need to ensure investor asset protection, the SFC acknowledged safeguarding investors will be their primary focus. They are also open to public opinion regarding the implementation of safety steps to protect investors in retail trading.

Julia Leung, the commission’s CEO, stated the following in the Asian Financial Forum panel discussion held in Hong Kong:

 “Virtual assets have in the past year gone from peak to low(price) levels. The good thing is that when the froth comes out from the system, it focuses investors’ and sellers’ minds on investor protection.”

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Persevering Through the Crypto Bloodbath

Hong Kong’s decision to grant permission to specific crypto tokens to the retail trading segment appears as a ray of hope in the long-withstanding crypto winter. The market-leading crypto Bitcoin has dropped well over 70% from its all-time high valuation during November 2021, currently valued at $17,220. ETH has also dropped in a similar fashion, along with the overall market capitalization of crypto. 

The crypto winter elongates with multiple fallouts and crashes. This includes the Terra Luna and the latest FTX fiasco. Despite all this, Hong Kong plans to march forward with digital assets. Thereby, setting up legislation and infrastructure to become a global crypto hotspot in the near future. 

Final Words

The SFC announced its decision to accept applications for Virtual Asset Service Provider(VASP) licenses starting in the middle of 2024. It declares that the upcoming crypto legislation framework will mandate license requirements. That too for all crypto service providers and trading exchanges. Failing to license will result in penalization and even arrests. Bond and investment funds tokenization will also be under SFC jurisdiction.