Hong Kong Retail Investors Can Trade Bitcoin starting June 1st as New Virtual-Assets Regime Launches.

Hong Kong Retail Investors Can Trade Bitcoin Starting June 1st as the city’s new virtual-assets regime comes into effect, according to the Securities and Futures Commission (SFC). In a significant move towards establishing itself as a global Web3 hub, Hong Kong has finalized rules that permit licensed exchanges to sell popular cryptocurrencies like bitcoin and ether to retail investors. The SFC’s decision aligns with the city’s ambitions, even as other governments express growing concerns over virtual assets.

As announced by the regulator on Tuesday, the SFC has successfully concluded the formulation of rules that enable retail trading of cryptocurrencies in Hong Kong. These rules, as previously outlined during a consultation launched in February, authorize licensed exchanges to offer cryptocurrencies with large market capitalization and high liquidity to retail investors. This development paves the way for interested platforms to apply for a license starting June 1. In the absence of such plans, the SFC advises businesses to initiate an orderly closure of their operations in Hong Kong, emphasizing the significance of compliance.

During a press briefing, the SFC clarified that it has not yet approved any cryptocurrency trading platforms for retail investors. However, the regulator expects licensed firms to commence retail trading activities in the second half of this year. Notably, as part of the new regulations, any form of advertising for unlicensed cryptocurrency exchanges will be deemed a criminal offense, including promotions by key opinion leaders associated with such platforms. Additionally, the law will prohibit the use of fraudulent or reckless methods to induce the acquisition of virtual assets.