Hong Kong opens cryptocurrency market to retail investors
The Hong Kong authorities have decided to relax the regulation of cryptocurrencies, effective Thursday, June 1. Until now, cryptocurrency exchanges were reserved for a handful of wealthy customers, those whose wallets weighed at least 8 million Hong Kong dollars (about 950,000 euros).
Cryptocurrency payments have been illegal in China since 2019 © Dado Ruvic/REUTERS
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With this new regulation, the Hong Kong authorities hope to revive their economy, shaken by the pro-democracy protests of 2019 and health restrictions related to the Covid-19 pandemic. According to several observers, Hong Kong could become a mandatory crossing point for investors from mainland China, where cryptocurrencies are virtually banned.
Cryptocurrency exchanges Huobi and OKX., both founded in China, have already announced their intention to apply for a license from Hong Kong regulators. And if Beijing's position remains unchanged, several senior Chinese economic officials have publicly supported this shift made by the archipelago.
This new regulatory framework is also adopted at a time when all regulators in the world are trying to regulate the cryptocurrency market. A market whose market capitalization now exceeds $1 trillion. At the beginning of April, the European Parliament adopted new rules on the matter. The International Organization of Stock Exchange Regulators has followed suit. At the end of May, it published a series of proposals to establish a harmonised regulatory framework for the exchange of cryptocurrencies.
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- Hong Kong
- China
- Cryptocurrencies
- Economy
- Finance