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- For residents of Hong Kong, investing in Bitcoin and other cryptocurrencies may become increasingly restricted as local officials try to crack down on the asset class for a variety of reasons
- She said that crypto-assets do not fall within the SFC’s jurisdiction since they are not recognized as securities or payment methods
- Hong Kong’s Financial Services and Treasury Bureau are contemplating restricting crypto access to portfolios with at least $1 million in assets, as data revealed in May
For residents of Hong Kong, investing in Bitcoin and other cryptocurrencies may become increasingly restricted as local officials try to crack down on the asset class for a variety of reasons. A top official with Hong Kong’s Securities and Futures Commission feels that more has to be done to combat cryptocurrency fraud, hinting at future advice on digital asset trading in the special administrative region. According to an English translation of an article published in the local daily ETNet, Deputy Chief Executive Liang Fengyi stated the SFC is required to broaden the scope of cryptocurrency supervision in the city-state, particularly as it applies to unauthorized trading.
She said that crypto-assets do not fall within the SFC’s jurisdiction since they are not recognized as securities or payment methods. As a result, many investors who took part in the fledgling asset class have lost a lot of money. Unlike mainland China, Hong Kong allows cryptocurrency trading, albeit the breadth of transactions is limited. On top of additional license requirements, government officials in the special administrative area have proposed limiting cryptocurrency trading to professional investors.
Hong Kong’s Financial Services and Treasury Bureau are contemplating restricting crypto access to portfolios with at least $1 million in assets, as reports revealed in May. The proposed regulations, if enacted, would limit crypto access to about 93 percent of the city’s population. Several cryptocurrency exchanges in Hong Kong have suspended or curtailed trading activities in recent months. Futu, a Hong Kong brokerage, said in June that it was suspending crypto futures trading due to regulatory concerns. Binance said in August that local traders will no longer be able to trade derivatives.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
