Hong Kong’s Securities and Futures Commission (SFC) has clarified its approach to cryptocurrencies.
Multiple media reports say that the Hong Kong regulator has approved trading in highly liquid cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) while implementing new rules designed to protect individual retail investors.
The new approach in Hong Kong comes after the bankruptcy of crypto exchange FTX last November, an event that has sent shockwaves through the global industry.
Prior to the collapse of FTX, Hong Kong had been relaxing its crypto regulations in an effort to attract cryptocurrency firms and encourage investments in digital coins and tokens.
Hong Kong’s Financial Services and Treasury Bureau said last autumn that it was open to approving a cryptocurrency exchange-traded fund (ETF).
However, by late November, regulators in Hong Kong began calling for tough new rules to be implemented on cryptocurrency firms, noting the FTX collapse and resulting volatility in digital asset prices.
Now, the Hong Kong regulator is seeking to clarify its position on digital coins and tokens and bring in new safeguards to protect investors who continue to put money into cryptocurrencies.
The government in mainland China has banned cryptocurrency mining and trading in cryptocurrencies such as Bitcoin (BTC), citing excessive energy consumption and risk.
