While other nations are at odds with the crypto world and are cautious of every move they make in furtherance of the introduction of crypto trading and its usage in their national economy, Hong Kong is going all in with all guns blazing to provide its citizens with access to crypto trading and legalizing the same. Despite other nations being hesitant and advancing jurisdictions which are essentially restricting the cryptocurrency market to grow firmer in their respective states, Hong Kong’s FinTech Association Chair makes no two ways about the fact that Hong Kong is and remains a crypto-friendly country and will grant access of crypto trading to its citizens.
At the Hong Kong WOW Summit, held in March, FinTech Association of Hong Kong (FTAHK) Chair, Neil Tan vocalized that while leading nations like the USA, and even some of its neighbours including Singapore were seen backing away from allowing crypto retail trading in their economies, Hong Kong can be seen as a trailblazer with the introduction of crypto-friendly laws. With that said, he also pointed to a legislation which read that a licensing regime for crypto exchanges will soon come into effect, most likely by June 1st, and will also encompass the retail sector. The new guidelines are anticipated to be released in May.
Stressing on the need for a market that is receptive to crypto trading and enumerating its value in the retail chain, Tan mentioned how it was inevitable to welcome crypto into their economy, legally and in a regulated manner as the options are dwindling. Supporting this move, Hong Kong’s security regulator proposed the idea of permitting retail traders to access the licensed crypto platforms according to its licensing regime proposals for Virtual Asset Service Providers. In an assessment, it found that repudiating access would only lead to traders assenting to unregulated overseas platforms, which could throw a wet blanket on the country’s economy.
Julia Leung, the CEO of the Securities and Futures Commission added that the retail traders would be restricted to “highly liquid” digital assets, without meeting out further details. This has given a good name to Hong Kong, which is now seen as one of the few economies welcoming the new wave of crypto and carving out a favorable and attractive framework for the same. Tan also vocalized the need for attracting talent and infrastructure providers who will make the transition smoother for the citizens.