The Hong Kong government has decided to ignore the cryptocurrency boom and is pushing for a legislative proposal banning retail investors from trading in crypto.
Although interest in cryptocurrencies and advanced technologies such as Blockchain is currently increasing worldwide, the Hong Kong government is enforcing a law restricting trade in cryptocurrencies.
The legislative proposal, which was published on the official government website, was presented last November and, after three months of consultation, is being transformed into a bill that may enter into force during the year.
An important paragraph in this bill is that it shows all service providers with virtual assets to own a license from the Securities and Futures Commission (SFC). However, companies wishing to obtain this license may only provide their services to professional traders.
Experts in the sector immediately criticized the bill, because if such a law came into force, it could result in many of the companies concerned leaving the region due to hostile regulations.
The daily Forkast.News received a statement from Flex Yang, CEO at Babel Finance, a Hong Kong-based crypto asset management firm, who said:
The industry is still in its early stage of development and regulators should allow more open space for innovation and entrepreneurship,
Limiting crypto trading opportunities only to professional investors risks losing market competitiveness for Hong Kong in comparison to other markets such as the U.S., U.K. and in particular Singapore.
Currently, a professional investor is considered to be one who owns a portfolio of at least HKD 8 million ($ 1.03M).
Read also: In the UAE, they have the first government-owned licensing entity that receives cryptocurrencies
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