The crypto adoption plan by the Hong Kong authorities getting support from Chinese authorities.
Hong Kong is a crypto & blockchain-friendly region in the world and in the present time retail crypto trading is not allowed in the country citing the high risk associated with the crypto investment but institutions are allowed to invest in certain crypto assets. In Q4 2022, Hong Kong authorities started to work to bring a framework & allow retail trading in the country again.
During a recent crypto gathering in Hong Kong, some Chinese officials were present & also talked about the crypto adoption in Hong Kong as a supportive decision from the purview of China.
“As long as one doesn’t violate the bottom line, to not threaten financial stability in China, Hong Kong is free to explore its pursuit under ‘One Country, Two Systems,’” Bloomberg quotes Nick Chan, a National People’s Congress member, and a crypto lawyer.
On 20 Feb 2023, Hong Kong’s Securities and Futures Commission (SFC) took its official step to allow retail crypto trading. On the same day, they talked about the consultation paper in the public domain and confirmed that all the crypto trading service providers will be required to have regulatory approval from the SFC agency. To this date, it is still unconfirmed how much time it will take for SFC to finish its work on this consultation paper & when it will allow retail crypto trading.
In the last few months, it has been seen that many crypto companies showed their inclination toward the Hong Kong crypto market.
In the latest, Singapore’s headquartered crypto exchange Huobi Global decided to relocate its headquarters to Hong Kong and also said that the company is planning to open a local exchange for Hong Kong crypto Investors. For all these things, Huobi Global also submitted its application with Hong Kong SFC to secure regulatory approval.