Cryptocurrency prices rose on Tuesday after the Securities and Futures Commission of Hong Kong (SFC) announced that it would allow retail trading of certain cryptocurrencies starting June 1.
The SFC said that it would approve applications for cryptocurrency exchanges that meet certain requirements, including having adequate risk controls and customer protection measures in place.
The announcement was welcomed by the cryptocurrency industry, which has been lobbying for greater access to the Hong Kong market.
Bitcoin, the world’s largest cryptocurrency, rose by more than 5% in the wake of the announcement.
Other cryptocurrencies also saw gains, with Ethereum up by more than 4% and XRP up by more than 3%.
The SFC’s decision is a significant step towards legitimizing cryptocurrencies in Hong Kong. It is expected to boost the local cryptocurrency industry and attract more investors to the market.
Bitcoin gained 1.7% to $27,293.64 on Tuesday, according to Coin Metrics. The largest cryptocurrency has been trading in a narrow range throughout May, unable to break above $30,000 but staying above $25,000. Ethereum rose nearly 2% to $1,851.91.
The cryptocurrency market has been volatile in recent months, with Bitcoin falling from a high of $68,789 in November to a low of $25,401 in May. However, the market has shown signs of resilience, with Bitcoin and Ethereum both recovering from their recent lows.
Some analysts believe that the cryptocurrency market is nearing a bottom, while others believe that the volatility will continue. It is important to remember that cryptocurrencies are a high-risk asset class and investors should only invest what they can afford to lose.
On Monday night, Hong Kong’s Securities and Futures Commission (SFC) announced that it will allow retail investors to trade certain cryptocurrencies starting next month on registered trading platforms.
The move was widely expected, as the SFC had put out a request for public comment on its proposed regulatory requirements around retail trading in crypto in February.
The SFC said that it will approve applications for cryptocurrency exchanges that meet certain requirements, including having adequate risk controls and customer protection measures in place.
The announcement is a significant step towards legitimizing cryptocurrencies in Hong Kong. It is expected to boost the local cryptocurrency industry and attract more investors to the market
Hong Kong is taking steps to become a global hub for cryptocurrency trading. This is in contrast to China, which banned cryptocurrency trading in 2021, and the United States, where the regulatory stance towards cryptocurrency has become more hostile since the collapse of FTX.
Hong Kong’s Securities and Futures Commission (SFC) has announced new guidelines that will allow retail investors to trade certain cryptocurrencies. The SFC has also said that it will approve applications for cryptocurrency exchanges that meet certain requirements, including having adequate risk controls and customer protection measures in place.
This is a significant step for Hong Kong, as it signals that the government is open to cryptocurrency trading. It is also a sign that Hong Kong is trying to position itself as a leader in the cryptocurrency industry.
China and the United States have taken a different approach to cryptocurrency. China has banned cryptocurrency trading altogether, while the United States has taken a more cautious approach. The U.S. Securities and Exchange Commission (SEC) has been cracking down on cryptocurrency exchanges that it believes are not complying with securities laws.
It remains to be seen whether Hong Kong will be able to succeed in becoming a global hub for cryptocurrency trading. However, the new guidelines are a positive step, and they could help Hong Kong to attract cryptocurrency businesses and investors.
This means that while the new guidelines may encourage some retail investors to start trading cryptocurrencies, it is unlikely that there will be a sudden surge in demand. This is because cryptocurrencies are still a relatively new and volatile asset class, and many investors are still hesitant to put their money into them.
However, Acheson does believe that we could see some increase in trading volume in June. This is because the new guidelines will make it easier for retail investors to buy and sell cryptocurrencies, and it will also give them more confidence in the market.
Overall, the new guidelines are a positive step for the cryptocurrency industry in Hong Kong. They will make it easier for retail investors to trade cryptocurrencies, and they will also give them more confidence in the market. However, it is unlikely that there will be a sudden surge in demand for cryptocurrencies as a result of these guidelines.
