The Hong Kong Securities and Futures Commission (SFC) will issue in May guidance on the licensing regime for digital asset trading platforms. Bloomberg reports, citing SFC chair Julia Leung.
In the course of consultation on the regulatory framework applicable to cryptocurrency exchanges, the SFC processed and answered more than 150 inquiries, the chairwoman noted.
According to the rules proposed in February, from 1 June 2023 all centralized platforms doing business in Hong Kong or interacting with local investors must hold an SFC licence.
The initiative effectively lifts the ban on retail trading of cryptocurrencies. Commission representatives stressed that they aim to ‘find the best balance between investor protection and market development’.
Earlier, Hong Kong’s financial secretary Paul Chan said that now ‘the right time’ to promote Web3-ecosystem in the city, despite the volatility of cryptocurrencies.
In January, Chan also said that the jurisdiction was ready to welcome crypto companies from around the world. He noted that authorities had recently completed work on the licensing regime for the digital-asset industry.
In April, Wall Street Journal reported that Hong Kong banks, including the Chinese state-owned Bank of Communications’ subsidiary, began taking crypto companies as new clients.