According to new law, only millionaires can invest in Bitcoin in Hong Kong
According to new law, only millionaires can invest in Bitcoin in Hong Kong
- Hong Kong has announced that it could implement a new law that only allowed professional investors (with at least $ 1 million) to invest in Bitcoin.
- The security guard will also have a greater control over the crypto industry, a departure from the previous regime than the regulations were "opt-in".
All over the world, the supervisory authorities have tightened their guidelines in terms of cryptocurrencies because the industry becomes too great to ignore them. The latest is Hong Kong, a global crypto and financial center that strives for better control over the industry. Among other things, the latest proposal will limit crypto trading to professional investors.
Hong Kong has been conducting consultations to cryptor rules since November last year. The region's financial services and tax office has now announced the results of its consultations and prefers no crypto dealers in retail.
like Reuters limit professional investors. In order to qualify as a professional investor, you have to have an investment portfolio in Hong Kong that exceeds 8 million HKD (USD 1.03 million). If the region uses this law, retailers are effectively excluded from the market. This will be a difficult blow for an industry that was founded to undermine the centralization of power, especially in the financial services industry.
The FTSB said: "The restriction of the services of a VA exchange (virtual assets) to professional investors is at least appropriate for the initial phase of the licensing system."
stricter supervision for exchange in Hong Kong
In addition to the ban on retailers, the regulatory authority also wants to tighten its supervision of the stock exchanges. At the moment, the stock exchanges in the region only have to volunteer to the regulatory authority. However, the FTSB wants the security and Futures Commission to have more power over the stock exchanges.
asley Alder, the CEO of the SFC noticed in a speech:
This is a significant restriction, since a platform operator is really determined according to the current legal framework to operate completely outside the regulatory radar by simply ensuring that his traded crypto assets do not correspond to the legal definition of a securities.
The regulatory authorities intend to soon present the proposed regulations to the legislature so that they can be adopted into the law.
Admittedly, more control of the exchange is required. The more the industry is regulated, the easier it will be to attract institutional investors. This regulation will also eradicate fraud in the aspiring industry.
The ban on retailers could, however, harm more than benefit. For the beginning, it would exclude astonishing 93 percent of Hong Kong's residents from the crypto. According to a report The South China Morning Post had around 504,000 inhabitants of more than $ 1 million. In a region of almost 7.4 million inhabitants, this means that an overwhelming majority of the residents cannot invest in crypto.
Leo Weese, the founder of the Bitcoin Association of Hong Kong es:
The restriction of the access of private individuals to Bitcoin would exceed the goals of the government to promote innovation and financial inclusion.
Source: Crypto-news-flash.com
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