• The Securities and Futures Commission (SFC) of Hong Kong has launched a consultation paper for the public to provide feedback on its proposed regulation of crypto exchanges.
• Exchanges will be required to obtain a license from the SFC and meet certain investor protection requirements.
• Huobi is seeking to obtain a crypto trading license from the SFC in order to expand its services in Hong Kong.
Hong Kong SFC Proposes Regulatory Requirements for Crypto Exchanges
The Securities and Futures Commission (SFC) of Hong Kong has called on the public to provide feedback on its proposed regulation for crypto exchanges seeking to serve retail investors in Hong Kong. Under the SFC’s requirements, all crypto exchanges offering trading services in Hong Kong must be licensed by the SFC. The commission has invited all interested crypto market participants to provide feedback on its proposed regulatory requirements on or before March 31.
Proposed Regulatory Requirements
SFC Chair Julia Leung said that retail investors would only be allowed to trade highly liquid crypto assets, and that the proposed requirements include robust measures to protect investors — following the ’same business, same risks, same rules‘ principles. In addition, the SFC has urged crypto exchanges willing to continue operating in Hong Kong to duly apply for a license, while those who do not intend to apply for a license should close down their operations.
Huobi Moves To Obtain License
Tron founder and Huobi adviser Justin Sun announced on Feb 20th that Huobi will be launched in Hong Kong as it seeks to obtain a crypto trading license from the SFC. With this new license, Huobi will be able to expand its services and offerings to customers in Hong Kong, providing a wider range of options when it comes to cryptocurrency trading and investments.
Public Invited To Provide Feedback
The SFC is seeking feedback from the public about whether or not licensed exchanges should serve retail investors as well as what measures should be implemented in order ensure adequate investor protection. All interested parties are invited submit their thoughts and opinions on these matters before March 31st .
Conclusion
The Securities and Futures Commission (SFC) of Hong Kong has established regulations concerning cryptocurrency exchanges with regards protecting retail investors within their jurisdiction. Cryptocurrency exchanges may now apply for licenses through this new framework set forth by the commission which also prevents non-licensed entities from operating within this space as well. The public is invited by the commission until March 31st 2021to submit their opinion regarding these changes made by them so they can assess how they can best protect those who wish invest into cryptocurrencies within their borders