Hong Kong to Open Crypto Exchange Access for Retail Users

The Securities and Futures Commission (SFC) in Hong Kong announced that it will soon allow licensed platforms to serve retail investors. 

In an announcement on May 23 from the SFC, the regulator said operators of virtual asset trading platforms willing to comply with the SFC's proposed guidelines are welcome to apply for a license.

The guidelines to be followed for virtual asset trading platforms will include aspects such as asset custody safety requirements, segregation of client assets and cybersecurity standards, among others.

The SFC CEO Julia Leung said that providing clear regulator expectations is "key" for creating a responsible, and innovative development environment.

"Hong Kong's comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules' and aims to provide robust investor protection and manage key risks."

While the guidelines will become effective as of June 2023, the SFC has yet to approve any virtual asset trading platform to provide services to retail investors. According to the announcement during the consultation period, the SFC received 152 written submissions from within the industry.

Additionally, the SFC said it will be implementing a "number of robust measures" to ensure protection for retail investors.

The announcement pointed out at the moment, most of the virtual asset trading platforms accessible to the public are not regulated by the SFC.

It continued to say, those who do not wish to comply with the upcoming guidelines should plan for an "orderly closure" of business operations in Hong Kong.

(Source: CoinTelegraph)