Hong Kong Regulator To Allow Only Approved Crypto Tokens

  • Hong Kong’s SFC is compiling a list of crypto assets.
  • Whitelisted cryptocurrencies are those with substantial liquidity and considered safe.

With a slew of new digital asset rules slated to go into effect this year. Regulators in Hong Kong will soon select which crypto tokens its people may invest in. This is the most recent crypto regulatory action taken by Hong Kong, a market with deep roots in the trade of digital assets.

According to a Reuters report, Hong Kong’s Securities and Futures Commission (SFC) is compiling a list of crypto assets that will be available to retail traders. Whitelisted cryptocurrencies, according to SFC’s new chief executive Julia Leung Fung-yee. Are those with substantial liquidity that are also considered safe for retail investors. This was said by Leung on a panel at the Asian Financial Forum in Hong Kong on January 11.

Stringent Regulatory Effort

Moreover, Leung elaborated by saying the SFC would consult with the public on restrictions for retail crypto trading. In addition to publishing a list of authorized tokens. The publication of the consultation document at the end of Q1 2023 is a part of a larger effort to regulate cryptocurrencies, which also includes the creation of the authorized list. New licensing processes for crypto exchanges and other virtual asset service providers are also part of this regulatory effort.

In Leung’s opinion, the ultimate aim is the safety of the investors. The head of regulation pointed out the significant price drop brought on by the present bear winter. A total of $50 million in Hong Kong dollars has reportedly been lost to cryptocurrency frauds by August of 2022. The newest encouraging trend in cryptocurrency to emerge from Hong Kong is the proposed legislation for retail players. 

A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.