The new licensing program, will restrict retail traders in Hong Kong to “highly-liquid” digital assets, according to the new CEO of Hong Kong’s Securities and Futures Commission, Julia Leung Fung-yee.
At the recent Asia Financial Forum, Leung pointed out that many digital asset platforms have thousands of products. However, the SFC executive highlighted that they are not planning to “allow retail investors to trade in all of them.” Instead, the SFC will set up criteria that allow retail traders to only trade major virtual assets.
While the SFC executive did not provide more details as to which assets will be available for trading, Leung mentioned that these will be assets with “deep liquidity.” When asked about Bitcoin or Ether, the SFC executive did not respond, but reiterated that “highly liquid” assets will be allowed.
Despite the limitations that will be placed on retail investors, Leung highlighted that they are moving to position Hong Kong as a virtual asset hub. The CEO also noted that proper regulation could prevent issues, such as the collapse of the FTX exchange, from happening in Hong Kong
