Hong Kong regulators have decided to ban retail trading in Hong Kong. This ban happened after several months of intense speculation about a likely prohibition.
According to a Reuters report on Friday, the financial services and treasury Bureau of Hongkong have released results of its consultation on a possible retail Crypto trading ban. However, this began back in November 2020.
Qualified Investors Only
Hong Kong’s FSTB has called for a comprehensive licensing regime for Crypto exchanges as part of its conclusion. Moreover, it is restricting trading only to qualified investors. However, as per the current HK law, only individuals with portfolios worth 8 million HK dollars are qualified as professional investors.
The retail Crypto trading ban is mandatory for the FSTB. However, at least in the early stages of the comprehensive Crypto licensing regime, the ban is necessary. FSTB is reportedly planning to represent its conclusions before legislators in Hong Kong. Moreover, it is to facilitate the proposal’s passage into the law.
If the law gets passed, the proposed licensing regime will also replace the current opt-in paradigm for the Crypto exchanges of the city.
Limiting the Trade
By limiting cryptocurrency trading to portfolios worth at least $1 million, FSTB potentially excludes up to 93% of the city’s population from gaining access to cryptocurrency trading.
However, several stakeholders expressed their dissatisfaction with the plan and argued that the move was inimical to the government’s goal of encouraging financial innovation.