Bloomberg: Hong Kong's Securities and Futures Commission to Announce Retail Trader Compliance Trading Conditions Today

Hong Kong is moving towards a more comprehensive regulatory framework for cryptocurrencies, with many industry players announcing their intention to apply for the licenses set to be released in June. However, the Hong Kong license still comes with conditions that limit retail trading, and whether it can effectively serve the general exchange users remains to be seen. Bloomberg reported that the Securities and Futures Commission of Hong Kong will announce the consultation conclusions on retail participation in trading today, 5/23. It is expected that under appropriate safeguards, trading of major cryptocurrencies such as Bitcoin and Ethereum can be conducted.

Prior reports have mentioned the relevant conditions: What are the requirements for retail trading on licensed exchanges in Hong Kong?

Can Hong Kong Retail Investors Trade Legally? SFC to Issue Results

Bloomberg reports that while cryptocurrency companies in other parts of Asia are facing conflicts with regulators, Hong Kong is striving to become a cryptocurrency hub and is expected to announce that retail investors can trade cryptocurrencies within its regulatory framework.

It is anticipated that the Securities and Futures Commission of Hong Kong will allow retail investors to legally trade larger market cap cryptocurrencies such as Bitcoin and Ethereum with appropriate safeguards in place.

This decision is based on conclusions drawn from a previous public consultation.

Industry players such as Huobi Global, OKX, and Amber Group have all expressed intentions to apply for compliance in Hong Kong.

SFC May Not Have Loose Conditions for Opening Up

According to the public consultation:

• Licensed exchanges should conduct knowledge assessments for retail investors
• Evaluation of retail investor suitability and risk tolerance, setting limits for customers, and regular reviews are necessary
• Exchanges should conduct due diligence on virtual assets
• The due diligence scope of exchanges includes the promotional materials and whitepapers of token issuers
• Only qualified large virtual assets can be listed
• Exchanges are advised to establish a committee for token inclusion and review

Cryptocurrency Regulation Upgrades in Malaysia and the Philippines

Malaysia Condemns Huobi Global's "Illegal" Operations

In recent days, tensions between regulatory authorities and the cryptocurrency industry in Malaysia and the Philippines have escalated. Malaysia has condemned Huobi Global for "illegally" operating and ordered it to cease its activities in the country. A spokesperson for Huobi Global stated that the exchange has not been operating in the country since 2022.

Related News: Huobi Global Operates Illegally in Malaysia

Philippines Accuses Gemini of Operating Without License in the Country

Meanwhile, the Philippines has accused Gemini Trust Co. of operating a derivative exchange in the country without a license. A spokesperson for Gemini declined to comment earlier.

Related News: Coinbase, Gemini Launch Offshore Derivatives Exchanges

Global Cryptocurrency Regulation Taking Shape

Not only the United States but many governments are implementing more regulatory measures for cryptocurrencies. For example, Hong Kong and Dubai are attempting to attract cryptocurrency-related investments, Singapore plan to restrict retail investors, and South Korea may pass independent cryptocurrency legislation following a series of industry scandals.

Hong Kong Embraces Cryptocurrencies, But Not Loosening Regulations

HKMA Chief Executive Eddie Yue has stated that while Hong Kong will allow businesses to establish ecosystems, it does not mean there will be relaxed regulations.

Related Podcast Topic: Hong Kong KOL Little Raccoon's Thoughts on Regulation