The Legislative Council of Hong Kong passed legislation that will soon open up virtual assets to retail investors, and local financial services are lining up for licensing approval.
Financial services providers in Hong Kong are already taking the primary steps to produce services to retail investors, in step with local reports. Brokers and fund managers within the region have reportedly asked for recommendation on licensing necessities before new legislation.
Lawmakers in Hong Kong passed an modification to the Anti-Money wash and Counter-Terrorist funding Ordinance (AMLO) in December 2022, that aligns with the region’s recent stance on broadening the chance for crypto commercialism.
The modification introduces a new licensing scheme for virtual plus service suppliers, which is able to allow retail investors the power to trade virtual assets. Currently, virtual plus trading is restricted to professional investors or traders with proof of a minimum of $1 million in bankable assets.
Victory Securities and Interactive Brokers were the primary 2 brokers in Hong Kong with SFC to trade virtual assets for their skilled clients.
According to Robert Lui, the digital asset leader at Deloitte Hong Kong, retail investors can most likely be able to trade virtual assets with a large market capitalization and liquidity.
Currently Hong Kong-based brokers don't would like specific licence to service clients trading Hong Kong-listed exchange-traded fund futures supported Bitcoin BTC $16,723 and Ether ETH $1,218Though, those {which will|which can|which is able to} give virtual asset commercialism will need further SFC approval.
The new licensing was at first scheduled for Mar.1 of this year, but the date was then pushed till Jun. one in order to give virtual asset service providers more time to accurately prepare.
Related: Crypto makes history in 2022: 5 instances of governments embracing digital assets
This comes when the SFC recently appointed Julia Leung as its new chief govt. Leung started her term on Jan. 1 and is ready to be in workplace for ensuing 3 years. She has previously spoken out regarding alteration native crypto laws.
An govt from the financial institution of urban center additionally recently said it absolutely was trying into capitalist protection laws.
( SAVANNAH FORTIS, Cointelegraph, 2023)