Hong Kong’s highly-anticipated crypto licensing regime
Hong Kong will launch a crypto licensing regime next month.
Hong Kong will introduce regulations for cryptocurrency exchanges launching in May to establish itself as a crypto hub.
At the public hearings, there were over 150 reactions received concerning the regulations for crypto exchanges.
Last year, public hearings were conducted to evaluate how to grant retail investors access to cryptocurrencies and investigate the option of introducing crypto exchange-traded funds in this region.
The new rules will also help retail investors trade major cryptos such as Bitcoin and Ethereum.
Investors in Hong Kong with a portfolio of HK$8 million or around $1 million are subject to certain restrictions under current legislation despite crypto exchanges being permitted to operate in the region.
The regulator is also launching several pilot projects to understand the needs of digital assets and their use in finance, including the tokenisation of green bonds and the development of the Hong Kong Central Bank’s digital currency.
Hong Kong’s crypto industry faces uncertainty
Despite Hong Kong’s attempts to create a firm foundation for crypto trading, questions remain about how it will interact with mainland China, where cryptocurrency trading was first prohibited in 2017.
Last year, the former head and creator of BitMEX commented on the issue, highlighting the necessity of appealing to Chinese investors for Hong Kong to attract crypto businesses.
Hong Kong’s position as the most significant crypto location has gradually begun to retreat. Cryptocurrency exchange Bitget has launched a new trading platform for its Hong Kong users.
Ethereum predictions point to a rally ahead
The price of Ethereum (ETH) has been hot in the crypto community lately, to the point that many experts have been consulted and asked to give their opinions.
Analysts predict Ethereum will rally ahead of the year, though it won’t come close to its all-time highs. The coin reached this high in November 2021, just before the crypto winter began to reduce crypto prices.
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