The chair of the FinTech Association of Hong Kong (FTAHK) claims that despite other jurisdictions taking a step back, Hong Kong remains enthusiastic about providing its citizens with access to crypto trading. According to Neil Tan, who spoke to Cointelegraph at the Hong Kong WOW Summit in March, while countries like Singapore and the United States appear to be scaling back on allowing crypto retail trading, Hong Kong is moving forward.
A new licensing regime for crypto exchanges is set to take effect on June 1, which will also include provisions for retail trading. The specific guidelines for these licenses are expected to be released in May. In February, the region’s securities regulator proposed granting retail traders access to licensed crypto platforms as part of its licensing regime proposals for Virtual Asset Service Providers (VASPs). This move was aimed at preventing traders from turning to unregulated overseas platforms, as currently only accredited professional investors can use these platforms.
SFC CEO Julia Leung Fung-yee announced in January that retail traders would be limited to trading “highly liquid” digital assets, without providing further details. In addition to offering an appealing legal framework for crypto, Hong Kong is focusing on attracting talent and infrastructure providers to support the industry.
Both the Chinese and Hong Kong governments recognize the potential in the region and are taking steps to support inbound talent. Tan emphasized the importance of having the necessary infrastructure in place to realize Hong Kong’s ambitions as a virtual asset hub. He believes that as cryptocurrencies gain more prominence, the opening of the financial industry to digital assets is a natural progression.
Overall, Tan expressed optimism about the future of crypto trading in Hong Kong, stating that the region is once again open for business and ready to embrace the opportunities presented by digital assets.