Hong Kong Plans to Legalize Crypto Trading – A Provocation Against China?

Since June 2021, China has banned all crypto trading and mining in the country, leading to an exodus of investors and miners. However, Hong Kong has only restricted crypto trading to professional investors for the past four years, but this attitude is changing.

Who Are These Bitcoin Mining Rebels Defying The Ban In China?

If the bill passes, retail investors in China will be able to trade crypto under the regulation of the Securities and Futures Commission (SFC). According to the head of the SFC’s fintech unit, Elizabeth Wong, during a panel organized by InvestHK, the proposal would allow retail investors to invest directly in virtual assets.

That said, only people with a wallet worth at least USD 1 million will be able to trade crypto, which is about 7% of the city’s population according to September 2021 data. Additionally, the SFC will allow the development of NFT ‘s and the metaverse in Hong Kong to make the city an “international hub for virtual assets.” And to consider allowing cryptocurrency-related ETFs for retail investors.

Why is Hong Kong loosening regulations on cryptocurrency?

Hong Kong has long been a leader in cryptocurrency development and was named the country best prepared for widespread crypto adoption by a July 2022 survey by Forex Suggest.

also read Twitter founder Jack Dorsey issues dire warning about Ethereum amid ETH rate volatility.

Some of the factors cited include cryptocurrency ATM installations, a startup culture, and positive cryptocurrency regulation.

Wong also noted that cryptocurrencies have become more legal in recent years, which is why the city is changing its stance on the sector. There are also hopes of attracting foreign investment to the city after a talent drain due to strict lockdowns and an uncertain political climate.

๐Ÿ’Ž Receive your free crypto hour

“Quickly Done, Well Done” crypto hour: Every Friday at 20.00, receive our free crypto tour in your email inbox. 100% added value, 0% spam!

๐Ÿ”ฅ Receive as a bonus your free guide “Find the Nuggets of the Future”: Learn how to analyze cryptos like a pro, avoid red flags and scams, to start or continue your adventure in the world of cryptocurrency.

Leave a Comment