Hong Kong relaxes policy on digital assets

Hong Kong wants to allow private retail investors to sell digital currencies on exchanges. The corresponding initiative was prepared by the Hong Kong Securities and Futures Commission (SFC).

Against the background of the latest round of growth in the price of digital assets related to China, one of the most influential crypto communities could emerge in Asia. Analysts believe that the softer policy of the Hong Kong authorities will increase the demand for currencies created by Chinese developers, and will also contribute to the development of the Asian segment of the crypto market.

According to the idea of the Hong Kong authorities, trading platforms will have to obtain a license. The relevant rules will come into effect from June this year. All cryptocurrency platforms that are ready to obtain licenses, including existing ones, “should start to analyze and review their systems and controls in order to prepare for the new regime.”

Local lawmakers are pushing for policy easing due to local investors continuing to operate on unregulated crypto platforms. Politicians, after ineffective bans on digital assets, are thinking about turning Hong Kong into a financial cryptocurrency center, experts say.

Huobi was one of the first platforms to apply for a license in Hong Kong. As the CEO of the crypto exchange Justin Sun noted, in addition to obtaining a license, the company intends to launch another platform in the country with a focus on institutional investors and rich people.

The emergence of the so-called “Chinese narrative” is also evidenced by the parallel growth in the cost of tokens developed by Chinese teams. Among the major assets, the value of which increased by tens of percent in February, includes projects such as Conflux, Filecoin, NEO, VeChain and others.

Earlier, the ex-head of BitMEX, Arthur Hayes, wrote that the legalization of crypto trading in Hong Kong would be the beginning of the return of all of China to the digital asset market. CEOs of popular American platforms have also recently talked about how Asia is gradually becoming a leader in the development of crypto projects and the Web 3.0 industry in general.