Hong Kong will introduce new guidelines for digital forex alternate from June

New laws for exchanging digital forex can be enforced
The Hong Kong Securities and Futures Fee (SFC) introduced on the twenty third that it had accomplished consultations on cryptocurrency alternate laws.
Consultations have ended, and new digital forex alternate laws can be enforced from June 1, as beforehand reported. Particular person traders may also be allowed to commerce digital currencies, however complete investor safety can be launched by way of measures equivalent to introducing a licensing system.
The SFC has been searching for public touch upon the brand new guidelines for a few month till the top of March. A complete of 152 feedback had been submitted throughout this era. Most opinion favors licensed exchanges that provide providers to retail traders, he stated.
In keeping with responses to the general public providing, one of many guidelines SFC has imposed on digital forex exchanges is the content material of listed shares. Specifically, shares that may be traded by particular person traders should have a excessive market capitalization and be included in no less than two impartial indexes.
This implies, for instance, Bitcoin (BTC) and Ethereum (ETH), that are included within the Nasdaq and Bitwise indices, might be listed.
It additionally stipulates that retail traders can’t use stablecoins till stablecoin laws are enacted between 2023 and 2024. It warns of the chance that costs will now not be secure and traders won’t be able to redeem them.

What are stablecoins
Cryptocurrency whose worth is at all times secure. Varied stablecoins have been developed whose worth is backed by a authorized or digital forex, or whose worth is stabilized by an algorithm.
Cryptocurrency Glossary

connection : What’s a stablecoin that even novices can perceive | Describe options and use circumstances
As well as, even exchanges which have a enterprise license can’t present rate of interest or mortgage providers. He additionally stated it was not potential to offer “items” concerning the buying and selling of sure shares. This prize is anticipated to incorporate airdrops (free distribution).
SFC CEO Julia Leung commented on the announcement:

Hong Kong’s complete cryptocurrency regulation goals to realize investor safety and threat administration primarily based on the precept of making use of the identical guidelines to the identical enterprise and the identical dangers.
With this new regulation, we wish to develop the trade in a sustainable method and help innovation.

Some consultants consider that Hong Kong’s new cryptocurrency laws may function a take a look at of whether or not China will approve cryptocurrencies sooner or later.
Turn out to be a cryptocurrency hub
Hong Kong has proven its willingness to turn into a cryptocurrency hub, at the same time as cryptocurrencies face headwinds such because the FTX chapter. In December final 12 months, Bitcoin and Ethereum ETFs (Change Traded Funds) had been listed on the Hong Kong Inventory Change.
connection : Hong Kong’s first Bitcoin/Ethereum ETF listed at this time
Additionally final week, it was reported that Chinese language state-owned firm Greenland plans to use for a license to function a cryptocurrency buying and selling enterprise in Hong Kong.
Greenland Monetary Know-how Group, a subsidiary of Shanghai’s largest actual property developer Greenland Holdings, which is 46.4% owned by the Municipal Authorities of Shanghai, trades cryptocurrencies, NFTs (non-fungible tokens), carbon credit, and so forth. get hold of a license for the aim of offering the service.
connection : State-owned firm China Greenland goals to supply cryptocurrency providers in Hong Kong
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Hong Kong’s submit to implement new guidelines for digital forex exchanges from June appeared first on Our Bitcoin Information.

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