Hong Kong Proposes to Ban Retail Crypto Trading
Crypto Guide
Live News

Keeping up with all the cryptocurrency news and updates is not an easy task, but we are up to the challenge! This way we can help our readers to keep track of changes in these fast growing currencies. Just like our site, lambo2btc.com is willing to face this challenge and on their site, they compile the features, key elements, and recent news involving bitcoin casino sites and which are the best to try!

Hong Kong Proposes to Ban Retail Crypto Trading

February 16, 2021      Jafrin Ahmed

Regulators in Hong Kong are ready to impose a ban on cryptocurrency trading for retail investors. In Nov 2020, Hong Kong’s Financial Services and the Treasury Bureau (FSTB) issued its Legislative Proposals to limit cryptocurrency trading for professional investors. Recently, a leading crypto industry body Global Digital Finance (GDF) said this proposal if implemented could drive investors toward unregulated platforms.

Hong Kong Planning to Turn Ban on Retail Crypto Trading into Bill

Following consultation with industry bodies and members of the public that ended in January, the government said it planned on turning the proposal into a bill. The draft proposals were under public consultation till 31 Jan 2021. The bill would be introduced to the city’s legislative council later this year.

READ  MY BITCOIN $13,400 TARGET MET!!! HUGE Correction After Blow Off Top?? | Altcoin Boom!? | $7,000?

Hong Kong’s Financial Services and the Treasury Bureau published a proposal in November 2020 to limit cryptocurrency trading to professional investors. Hong Kong’s security rules define professional investors as individuals with a portfolio of at least HK$8 million, or US$1 million.

Recently, in response to the bill, a leading crypto industry body Global Digital Finance (GDF) said this proposal was a major concern. GDF includes members from leading cryptocurrency exchanges such as Bitfinex, Coinbase, Huobi.

GDF added that if the proposal is enforced, it might see non-professional investors move towards unregulated platforms that might create new areas of financial crime risk. The crypto advocacy body even highlighted that other FATF member countries such as Singapore, the UK, and the U.S. have allowed retail investors to trade cryptocurrencies.

Hong Known for Crypto-Friendly Regulations

As per Hong Kong law to qualify as a professional investor, one must own an investment portfolio of at least HK$8 million (US$1 million).

READ  Crypto Is An Intangible Asset In The Country: Ukraine

Meanwhile, according to a survey, only 504,000 people (or 7%) of the city’s population owned more than US$1 million, and therefore, qualified to be professional investors in mid-2020. If the new crypto regulation is passed, it will deprive more than 90% of the population of investing in cryptocurrencies.

Hong Kong is usually known as the most active regions for crypto investors, due to its cryptocurrency-friendly regulations. If enforced, the new proposal would negatively impact Hong Kong’s reputation being the most crypto-friendly region in Asia.

#FATF #Financial Services and the Treasury Bureau (FSTB) #GDF #Global Digital Finance #Hong Kong
Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.