In June, Hong Kong introduces its new crypto licensing structure for Virtual Asset Service Providers, although individual investors cannot trade digital. Professional authorized investors are regulated.
As Asia begins the work week, bitcoin was trading at $24,226 and ether $1,689, both down almost 2% and 1.5% in the past 24 hours.
Bitcoin gained 11% last week, while ether gained 9%. Layer 1s like Solana, Polkadot, and Polygon have increased 20%, 19%, and 18.5%.
DOGE is up 5% and SHIB is up 4% after the market tested their gains following an Elon Musk tweet last week. Floki, Musk’s dog, is down 7% today but up 108% for the week.BitBull Capital CEO Joe DiPasquale said bitcoin’s new support level is $23,000 and the next week is crucial for $30,000.
He told CoinDesk in a message that Bitcoin needed to recapture $23,000 to see more positive action. “With February ending, another strong monthly closing may be what the market needs for Bitcoin to test $30,000.”
DiPasquale predicts a short-term market consolidation or rise.Investors anticipate lackluster Coinbase earnings next week. Coinbase officials will likely discuss U.S. regulators’ plans to curtail crypto’s banking access.Crypto’s uptrend will be tested.
Hong Kong is warming up to crypto, and on June 1, a licensing framework for Virtual Asset Service Providers (VASPs)—crypto exchanges—begins.As a tweet hints, will crypto be “totally legal” in the city for everyone? No.
The VASP framework for licensing exchanges, which recently concluded a multiyear consultation, currently restricts access to accredited professional investors. No retail investors.
After consultation, the Hong Kong Securities and Futures Commission (SFC) may allow retail access to virtual asset services.
Reuters reported in January that the SFC is investigating which cryptocurrencies to offer individual investors if they are allowed. CEO Julia Leung stated that only “very liquid” assets will be listed initially.
“Brand Hong Kong” is more well-known than Seychelles or St. Kitts and Nevis, according to city officials, making June 1 an opportunity. To handle a surge in license applications, the regulator is hiring.Christopher Hui, FSTB secretary, told CoinDesk, “We’re able to pull together investments globally.” We can regulate and sustain these investments.
Hui said Hong Kong’s “rule of law, regulation, economic modus operandi” lends credence to crypto.Hong Kongers disagree, though.”For those platforms operating outside of Hong Kong, we see no reason to incorporate in Hong Kong, open an office here, go through the stringent regulatory processes, given the local market is small,” wrote Bitcoin Association of Hong Kong co-founder Leo Weese in 2021. “Local institutional investors can interact with foreign platforms through their foreign subsidiaries.”
“Can reintroduce clarity and stability after years of uncertainty,” Weese said in an interview.“People should have the easy access to bitcoin they’ve had for 12 years.”
Retail investors will love trading with a Hong Kong corporation. Hong Kong has no capital gains tax, while Japan shows what happens when regular investors trade in a controlled framework. Japanese traders seem to live in a parallel world where their tokens were stored with a custodian and funds were reimbursed after FTX.
Hong Kong’s retail investors aren’t ready yet. That’s ongoing.