Hong Kong’s Securities Futures Commission (SFC) is set to release cryptocurrency exchange licensing guidelines in June, according to a Bloomberg report. Julia Leung, CEO of the SFC, has released guidelines for crypto exchanges, which will allow retail investors to trade major tokens like Bitcoin and Ether in a new licensing regime for crypto platforms. The licensing regime consultation process received over 150 responses from interested parties, and as Hong Kong’s support for crypto businesses grows, more crypto exchanges are expected to follow suit.
Several trading platforms, including Hashkey and OSL, have already begun delivering crypto-related services to investors under SFC supervision. However, Bitget, a cryptocurrency exchange, recently announced that it would no longer provide services to Hong Kong users due to new legal requirements. Other offshore exchanges have also begun to limit Hong Kong consumers due to these legal requirements.
According to a Forex Suggest study published in July 2022, Hong Kong is the best-prepared country for widespread cryptocurrency adoption, with a crypto-readiness score of 8.6. The study took into account several factors, including the number of crypto ATM installations proportional to the population and geographical size of the jurisdiction, as well as the number of blockchain startups per 100,000 people. Hong Kong’s smaller land mass helped the country top the list, with a network of 146 crypto ATMs, representing just 0.4% of crypto ATMs worldwide. Hong Kong residents are never more than 4.3 miles away from a crypto ATM due to the smaller area.
Overall, Hong Kong is positioning itself as a leading jurisdiction for cryptocurrency and blockchain-related businesses, with growing support from regulatory bodies and a strong infrastructure.
