Hong Kong is banning crypto for retail traders, as the legislative bill, presented by the City’s financial regulators and treasury bureau, completed the 3-months introductory period; during which the bill was presented before the relevant parties.
Bill was prepared by Hong Kong’s Financial Services and Treasury Bureau last November. It will effectively ban crypto for retail traders and will also impel all the crypto-related platforms to attain a license from the City’s financial regulatory body SFC-Securities and Futures Commission.
After the bill is passed, only the traders who will qualify as professional traders would be allowed to trade in crypto. Notably, as revealed by South China’s morning post, only 7% of Hong Kong’s population qualify as professional traders. As per law, only those with more than HK$8 million of assets could be perceived as professional traders.
According to a survey conducted by Citibank, last Sep, there were merely 504,000 total multimillionaires; with more than HK$10 million-which accounts for 1.3 million US dollars in the city with a population of 7,496,981 people.
Resultantly, if the bill is passed, 93% of Hong Kong’s population would be deprived of crypto-trading.
Malcolm Wright, chair of Digital Finance’s Advisory Council criticized the decision as he stated:
“Restricting cryptocurrency trading to professional investors only is different to what we have seen in other jurisdictions such as Singapore, the UK, and the US, where retail investors can buy and sell virtual assets,”
Global Digital Finance asserted that the bill goes beyond the FATF’s recommendations to curtail illicit financing.
GDF asserted that the bill would, on the contrary, increase the prospects of money laundering because as the regulated crypto platforms would get banned for the retail traders, they will naturally move towards unregulated crypto platforms.
Moreover, Flex Yang, CEO at Babel Finance highlighted the harms of the bill as he stated:
“Limiting crypto trading opportunities only to professional investors risks losing market competitiveness for Hong Kong in comparison to other markets such as the U.S., U.K. and in particular Singapore.”
A Complete Overview of Cryptocurrency Cloud Mining Platform – TopHash
9 Out of Every 10 Central Banks Around the World are Exploring CBDCs, Ripple Reports
XRP Is On Its Way to a Strong Comeback as Coin’s Rising Trading Volume Shows Growing Investor Interest
Research Uncovers Why XRP Is Japan’s Most Favored Cryptocurrency
XRP Falls to $0.47, as the SEC Strikes Back at Ripple
Recent Press Release
CGMD Miner’s Low-Cost Coin Mining : Spend Less, Earn More!
As more players enter the cryptocurrency space, mining becomes more complex and requires more computing power. As a result, many...
Will Arbitrum Reach $1? ARB Struggles, SPCT Offers Better Prospects
As the crypto market recovers from Bitcoin’s (BTC) recent crash, Arbitrum (ARB) is enhancing its network capabilities to improve its...
Cardano (ADA) Lags, Analysts Predict VC Spectra (SPCT) Will Outpace it
Cardano’s (ADA) price has suffered despite the launch of Cardano’s Project Catalyst Testnet on August 25. Even when the news...
SUI and Hedera (HBAR) Slump Ahead of Token Unlocks, VC Spectra (SPCT) Gains Users
Token unlocks in crypto are typically bearish signs due to basic supply and demand. Analysts will keenly observe how Sui...
While Polkadot (DOT) Pauses, VC Spectra (SPCT) Offers a 220% Potential Upside!
VC Spectra (SPCT), a rising blockchain for investments and asset management, has grown considerably in its ongoing presale. Meanwhile, Polkadot...