Hong Kong primed to take Singapore’s crypto crown

Regulated financial hubs are a focal point for industry and market participants.

Hong Kong’s decision to launch cryptocurrency retail trading next year is in stark contrast to Singapore’s decision to impose a stricter regulation.

The surprising move still has investors and executives assessing the possible consequences.

A seismic shift in the region happened after Hong Kong finally clarified the requirements for retail investors to start trading digital assets. This happened in the face of a strict crypto ban in mainland China.

Hong Kong was largely considered a global financial hub before China made moves to take control of the special administrative region. Its plans to introduce retail crypto trading strengthen the notion it still has ambitions to hold the crypto crown.

The Financial Times (FT) reported on multiple industry professionals and investors weighing in. According to Lennix Lai – director of financial markets at OKX – this is a good move by Hong Kong.

Lai was cited as saying that while people from the industry are always looking to get a new license whenever possible, what they really want is regulation in a major financial hub.

OKX is a crypto exchange that operates both in Hong Kong, as well as Singapore.

The Hong Kong Securities and Futures Commission (SFC) launched a consultation paper, containing the guidelines and necessary rules for trading exchange-traded funds (ETFs), reported FT Chinese.

The SFC released a circular, outlining that management companies are required to “have a good track record of regulatory compliance”, and at least three years of proven experience in managing ETFs.

Furthermore, before the launch happens officially, management companies are “expected to carry out extensive investor education”.

According to FT Chinese’s report, retail investors would initially be restricted to put their funds into ETFs investing in Ethereum (ETH) and Bitcoin (BTC) futures.

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Written by Kyamil Nasuf


Kyamil is a big tech fan, who loves hummus on everything and has enjoyed writing from a young age. He's had experience in writing anything from essays, through personal art, to news pieces and more serious tech analysis. In recent years he’s found fintech and gambling collide with all his interests, so he truly is a great fit to our team.

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