The Hong Kong Securities and Futures Commission (SFC) has announced intentions to give individual investors access to virtual asset trading platforms. The move is intended to foster responsible and innovative development in the country’s financial industry.
According to the SFC’s proposed guidelines, regulated platforms that meet specific conditions will be authorized to service retail investors. Furthermore, these principles are concerned with the security of assets and the protection of customer finances.
Julia Leung, the CEO, underlined the significance of setting clear regulatory standards. This is done in order to establish a strong protection framework.
The guidelines will go into effect in June 2023. Moreover, the SFC has not yet allowed any virtual asset trading platforms to provide services to individual investors. The SFC collected 152 submissions from industry stakeholders during the consultation period.
🚀 Exciting News!
Hong Kong’s securities regulator is unlocking the door for retail investors to dive into the world of crypto.
This is a progressive step towards embracing a fully digital economy! 🌐
— Walletor (@walletorapp) May 23, 2023
The SFC will implement many steps to protect retail investors, including sound governance standards. They are also verifying suitability during the onboarding process, and undertaking improved due diligence for tokens. Admission criteria and disclosure requirements will be developed as well.
It is worth mentioning that the SFC does not currently control the majority of virtual asset trading platforms available to the public in Hong Kong. As a result, firms who refuse to comply with the upcoming standards would be expected to close their Hong Kong operations in a timely manner.
This action, according to analysts, is a natural evolution for Hong Kong. This is done as it opens up its financial market to digital assets. Hong Kong’s decision to allow retail investor access to virtual asset platforms signifies a significant step towards embracing the DeFi world and fostering innovation within its financial sector.
