Monetary providers suppliers in Hong Kong are already taking the primary steps to supply providers to retail traders, in accordance with native reports. Brokers and fund managers within the area have reportedly requested for recommendation on licensing necessities forward of latest laws.
Lawmakers in Hong Kong handed an modification to the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (AMLO) in December 2022, which aligns with the area’s current stance on broadening the chance for crypto buying and selling.
The modification introduces a brand new licensing scheme for digital asset service suppliers, which can enable retail traders the flexibility to commerce in digital belongings. Presently, digital asset buying and selling is restricted to skilled traders or merchants with proof of at the very least $1 million in bankable belongings.
Victory Securities and Interactive Brokers had been the primary two brokers in Hong Kong with SFC to commerce digital belongings for his or her skilled shoppers.
In accordance with Robert Lui, the digital asset chief at Deloitte Hong Kong, retail traders will most probably be capable to commerce digital belongings with a big market capitalization and liquidity.
Presently Hong Kong-based brokers don’t want particular licence to service shoppers buying and selling Hong Kong-listed exchange-traded fund futures based mostly on Bitcoin (BTC) and Ether (ETH). Although, these which can present digital asset buying and selling will want extra SFC approval.
The brand new licensing was initially scheduled for Mar.1 of this yr, nonetheless the date was then pushed till Jun. 1 as a way to give digital asset service suppliers extra time to precisely put together.
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This comes after the SFC just lately appointed Julia Leung as its new chief government. Leung began her time period on Jan. 1 and is ready to be in workplace for the following three years. She has beforehand spoken out about tightening native crypto laws.
An government from the Central Financial institution of Hong Kong additionally just lately stated it was wanting into investor safety laws.
