Hong Kong’s Securities and Futures Commission (SFC) has called on the public to provide feedback on proposed regulations for cryptocurrency exchanges looking to serve retail investors in Hong Kong.
The Hong Kong government has received several awards from the cryptocurrency community following its plan to legalize cryptocurrency trading for retail investors from June 1.
However, to ensure a safe investment environment, SFC Chairman Julia Leung said retail investors will only be allowed to trade highly liquid crypto assets.
Exchanges licensed from SFC
SFC In Light Of Plans To Legalize Crypto Trading In Hong Kong announced On February 20, it announced that it had launched a public consultation paper to provide feedback on the commission’s regulatory plans for cryptocurrency exchanges.
Affiliated with SFC requirements, All cryptocurrency exchanges offering trading services in Hong Kong must be licensed by the SFC.
The SFC said it is seeking feedback on whether it will allow licensed exchanges to offer its services to retail investors and on measures taken to ensure adequate investor protection.
SFC Chairman Julia Leung said the proposed requirements include strong measures to protect investors that follow the principle of “same business, same risks, same rules”.
The Commission called on all interested cryptocurrency market participants to provide feedback on the proposed regulatory requirements by March 31st.
In addition, the SFC is urging cryptocurrency exchanges that wish to continue operating in Hong Kong to formally apply for a license, and asks exchanges that do not intend to apply for a license to close their operations.
Huobi moves to obtain Hong Kong license
Justin Sun, Founder of Tron and Advisor to Huobi announced On February 20th, Huobi is set to launch in Hong Kong as it seeks to obtain a crypto trading license from the SFC.
“The new license will allow Huobi to expand its services and offerings to customers in Hong Kong and offer a wider range of crypto trading and investment options,” Sun said.
A new exchange, Huobi Hong Kong, is focused on providing trading services for institutional investors and high net worth individuals.