Hong Kong’s new crypto law is coming into effect on Thursday, June 1st, imposing a licensing regime for virtual-asset platforms.
The Securities and Futures Commission of the SAR plans to let individual investors buy and sell bigger tokens like Bitcoin and Ethereum, however unlicensed platforms will be banned.
A crypto entrepreneur told Bloomberg that a regulatory crackdown upended his business in China. He considers Hong Kong, which is currently focusing on developing new regulations for cryptocurrency, may not prioritize crypto in the long term.
Entrepreneur Bobby Lee established China’s first Bitcoin exchange and then shuttered the mainland trading platform after a clampdown by the Chinese government in 2021.
According to Hong Kong’s regulator, the new rulebook will implement a serious of measures designed to protect retail investors including vetting tokens before they’re listed on exchanges. Smaller investors are required to jump through several hoops, including investor training and awareness of exposure risks.
Hong Kong revealed, in May 2022, new regulations that called for exchanges based in the city to obtain licenses and only serve professional investors.
Hong Kong’s top financial boss, Paul Chan, said in a blog post on April 9th that global competition in the development of Web3 is strengthening, and Hong Kong plans to adopt a strategy embracing proper regulation and promoting development.