The Hong Kong Securities and Futures Commission (SFC) is considering allowing retail investors to invest directly in virtual assets. This was stated by the regulator’s head of fintech, Elizabeth Wong, according to the South China Morning Post.
In her words, the initiative marks a shift away from the SFC’s position that permits cryptocurrency trading on centralized exchanges only to professional investors. These include individuals with portfolios of at least HK$8 million ($1 million).
“We have four years of experience regulating the industry […]. We believe, in fact, that this is a good time to consider carefully whether we would adhere to this requirement only for professional investors,” Wong said.
According to the report, industry participants had previously expressed concerns about current cryptocurrency trading rules. In their view, the restrictions deter companies, and the lack of regulatory clarity undermines Hong Kong’s status as a ‘centre of virtual assets’.
In 2019, the SFC published rules aimed at defining the regulatory framework for fund management companies that direct more than 10% of their portfolios into cryptocurrencies.
That same period, the regulator introduced licensing requirements for “virtual asset trading platforms.” Permission to operate in Hong Kong was required if at least one security token was traded on the platform.
Later, the Commission decided to extend regulation to all Bitcoin exchanges.
Earlier in 2021, the Hong Kong Financial Services and Treasury Bureau began drafting a bill that bans cryptocurrency trading platforms from operating without a licence.
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