Hong Kong to only allow investing in highly liquid virtual assets

Hong Kong’s Securities and Futures Commission (SFC) Chair Julia Leung said the committee volition let retail investors to commercialized lone highly liquid crypto assets, South China Morning Post reported.

Earlier connected Jan. 9, Hong Kong’s Financial Secretary Paul Chan announced that from June 2023, the authorities volition commencement issuing licenses to let crypto exchanges to connection trading services to retail investors.

However, the recently appointed SFC Chair Julia Leung said that trading successful crypto assets volition beryllium restricted to highly liquid products.

Leung noted that respective crypto exchanges person implicit 2,000 assets listed, but, the SFC volition not let retail investors to commercialized successful each of them. Leung said:

“We volition acceptable the criteria that would let retail investors to lone commercialized successful large virtual assets.”

The SFC Chair added that lone assets with heavy liquidity volition beryllium connected the trading list. It volition beryllium risky for retail investors to commercialized assets with debased liquidity arsenic they are much prone to marketplace manipulation.

She said the regulator volition enactment to guarantee that approved exchanges person capable liquidity to header with volatile marketplace conditions.

Furthermore, the June 2023 regulatory line volition necessitate crypto exchanges to person hazard management, interior controls, and due custodian arrangements, successful bid to safeguard their customers’ assets.

Additionally, Leung said the SFC volition enactment with the Hong Kong Stock Exchange to let listed exchanges to disclose their clime risks.

The station Hong Kong to lone let investing successful highly liquid virtual assets appeared archetypal connected CryptoSlate.