Hong Kong plans to lift the ban on crypto trading

In a recent turn around by the government regarding cryptocurrency, Hong Kong plans to lift the ban on crypto trading in the country.

The Securities and Futures Commission (SFC) of Hong Kong is seeking input from the general public on a new licensing scheme it has proposed for cryptocurrency exchanges that would go into effect in June 2023.

The decision to allow regulated exchanges to service retail investors in the nation and the implementation of “strong investor protection measures” are two major issues that will be discussed throughout the public consultation period.

On Feb. 20, the SFC announced the consultation process and outlined a new licensing framework for the sector, proposing that all centralized cryptocurrency trading platforms operating in Hong Kong be required to hold a license from the regulatory agency.

While modifications have been made to some of the existing prerequisites, regulatory standards are based on the current requirements for licensed securities brokers and automated trading venues.

Crypto trading in Hong Kong

According to a statement from SFC CEO Julia Leung, the “recent upheaval” in the cryptocurrency ecosystem and the demise of key firms like FTX are the main drivers behind the need for clear regulatory standards for the sector that prioritize investor protection:

“As has been our philosophy since 2018, our proposed requirements for virtual asset trading platforms include robust measures to protect investors, following the ‘same business, same risks, same rules’ principle.”

Each individual or company offering services related to cryptocurrencies is required, according to the notice, to seek a license from the SFC.

In addition, there are guidelines for cryptocurrency exchanges and service providers.

The secure custody of assets, Know Your Customer, conflicts of interest, cybersecurity, accounting and auditing, risk management, anti-money laundering/counter-financing of terrorism, and market misconduct prevention are just a few of the prerequisites that come with this.

In the interim, a handful of authorized brokers and fund managers have started providing investors with services linked to cryptocurrencies under the SFC’s oversight.

This has been yet another important factor in the SFC’s decision to open up access to cryptocurrencies to all kinds of investors as Hong Kong plans to the lift the ban on crypto trading starting in June 2023 via authorized platforms.

About Kumo

Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.

Kumo wallet is your all-in-one social payment app for seamless payment solutions.

Website | Twitter | Facebook | Instagram | Email