Cryptocurrencies~, As part of Hong Kong’s efforts to reestablish itself as a leading center for the financial technology industry, the city is planning to relax its prohibition on the retail trade of cryptocurrencies.
Following the conclusion of its consultation on proposed regulations for digital asset platforms, the Securities and Futures Commission (SFC) made the announcement that regulated entities will soon be able to provide their services to retail investors. To protect retail investors, the Securities and Futures Commission of Singapore (SFC) will implement new safeguards, one of which will be a stringent screening procedure for digital tokens before those tokens are listed on exchanges. This decision constitutes a rollback of the limits that were put into place the previous year, and it is anticipated that the new regulations will go into effect on June 1 of the year 2023.
During the time of consultation that was held by the SFC, opinion was solicited from various industry stakeholders, most of whom expressed their approval of the proposed standards. Because of the good feedback, the regulatory body has made the important decision to allow licensed virtual asset providers the chance to service retail cryptocurrency investors. This is a substantial shift in policy. However, smaller investors will be required to satisfy certain duties, including as taking investor training and proving understanding of the potential dangers.
The Securities and Futures Commission (SFC) stressed the significance of solid governance, rigorous onboarding procedures, and clear disclosure standards as components of the protective measures. The Securities and Futures Commission (SFC) will not publish a list of assets that are suitable for retail investors; nonetheless, platform operators are reminded of their legal obligations to ensure that they are in accordance with Hong Kong’s legislation for public offerings.
The decision to eliminate the retail trading ban was made in response to the movement of cryptocurrency businesses to other countries, like Singapore, which have more favorable regulatory regimes. The decision to eliminate the ban on retail trading was made in response to the movement of cryptocurrency startup companies to other countries, primarily Singapore, which have more favorable regulatory conditions.
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