Several regions across the world have been embracing crypto after its five-fold surge. Hong Kong, however, has limited the trading of crypto to professional investors.
While the crypto-verse started out as a market free from the shackles of governments across the world, its constant association with the dark web forced authorities to intervene. Despite this, the crypto-verse is considered a decentralized system free to all. This appears to be changing with time as several governments have started to ban the trading of digital assets while outrightly calling them a sham.
Hong Kong seems to have joined this list with its latest announcement. However, the region is doing things a little differently. In its latest report, Reuters revealed that not all citizens of Hong Kong would be allowed to trade or use a cryptocurrency exchange. The services offered by any licensed crypto platform in Hong Kong would be confined to professional traders only.
Hong Kong upgrades its crypto laws
The aforementioned laws reportedly came into notice in the government proposals that were published today. The volatile nature of the crypto-verse has made several billionaires while destroying the savings/ investments of many others. Authorities across the globe have been striving to protect their citizens from enduring any major loss through crypto. Hong Kong seemed to be doing the same by restricting its citizens from using these assets.
As per the city’s law, a person would be considered a professional investor only if his/her/ their portfolio consists of $1.03 million or HK$8 million. Hong Kong’s Financial Services and the Treasury Bureau [FSTB] stated,
“[…] confining the services of a VA exchange to professional investors…. is appropriate at least for the initial stage of the licensing regime.”
Additionally, prominent Chinese new portal, 8BTC pointed out the importance of getting a crypto exchange licensed in the city. The platform tweeted,
Furthermore, noting the repercussions of failing to do so, 8BTC added,
“Carrying out regulated virtual asset activities without a license is liable to a fine of HK$5 million and imprisonment for seven years; And, in the case of a continuing offense, a further fine of HK$100,000 for each day during which the offense was continued.”