• The Securities and Futures Commission (SFC) in Hong Kong is prioritizing consumer protection by limiting retail investors to trading only “Highly Liquid” Crypto Assets.
• The SFC will release a consultation paper later this quarter that will give more details on products and conditions for retail investors to trade in virtual assets.
• The SFC will also release guidelines for the licensing requirements for virtual assets exchanges.

Hong Kong is taking a major step forward in the development of its crypto regulations. At the Asia Financial Forum on January 11th, Securities and Futures Commission (SFC) CEO Julia Leung Fung-yee announced that the commission is focusing on consumer protection by only allowing retail investors to trade “highly liquid” crypto assets.

The SFC is planning to issue a consultation paper during this quarter that will provide more details on products and conditions for retail investors. This paper will also set the criteria for which major virtual assets retail investors can trade in. Leung stressed the importance of limiting retail investors to only trading specific assets, as some virtual asset platforms have over 2,000 products available.

In addition to the consultation paper, the SFC will also be releasing guidelines for the licensing requirements for virtual assets exchanges. This will ensure that all exchanges operating in Hong Kong will have to meet certain standards in order to be approved.

These regulations are an important step in the development of the crypto industry in Hong Kong. By limiting retail investors to only trading “highly liquid” assets, the SFC is making sure that investors are protected and that the industry remains safe and secure. The consultation paper and licensing requirements will ensure that all exchanges are up to the standards set by the SFC and that they are able to provide a safe and secure environment for investors.