Key Notes

Key Notes:

Hong Kong crypto agenda is growing with 12 improvement models in view.The region’s securities commission plans to make OTC trading safer.Among other key areas to change is staking which many investors are now embracing.

Hong Kong is working hard to become a major hub for crypto in Asia. The Securities and Futures Commission (SFC), the region’s top financial regulator, has introduced a plan to help the industry grow.

The regulatory agency has unveiled 12 steps to improve security, attract more investors, and help traditional finance use blockchain while keeping investors safe. The goal is to make Hong Kong a leader in the crypto industry while keeping investors safe.

According to the roadmap, one of the main changes is the introduction of licenses for over-the-counter (OTC) crypto trading and custody services. OTC trading allows large investors to buy and sell crypto privately.

However, this can be exploited by bad actors and lead to fraud. The new rules and license will make OTC trading more transparent and prevent market manipulation. These changes will help attract investors who need better security for their assets.

Before now, the SFC only approved retail trading of crypto like Bitcoin BTC $96 656 24h volatility: 1.3% Market cap: $1.92 T Vol. 24h: $17.95 B and Ethereum ETH $2 769 24h volatility: 5.0% Market cap: $333.82 B Vol. 24h: $18.23 B in Hong Kong. Also, the approved trading platforms in the city are not allowed to list new crypto assets. Meanwhile, LiquidityTech Limited (LTP HK) recently received five operational licenses from the SFC.

Coinspeaker noted that these licenses are to offer regulated services to proprietary trading firms, hedge funds, asset managers, and corporate investors. Now, the regulatory agency is looking at ways to allow retail traders to list more tokens.

However, the new tokens will only be accessible to professional investors at first. The regulator is also considering crypto derivatives, which are financial products that help investors manage risk when trading crypto. This could make the market safer and more stable for big investors.

Staking, where investors lock up their crypto to earn rewards, is another area under review. The SFC wants to create rules for staking to protect investors from risks like losing funds due to system failures.

The goal is to make staking a safe and reliable way to earn money from crypto and help secure blockchain networks.

Beyond this latest move, Hong Kong regulators have become more supportive of the crypto industry. In January, Coinspeaker reported that Hong Kong courts used blockchain to send legal notices to offenders. Now, the government is more open to using blockchain in different areas.

As part of the roadmap to ensure crypto growth in the region, SFC is working on reducing barriers for foreign companies. This will make it easier for international crypto firms to work with local trading platforms.

This will help Hong Kong’s crypto market grow and improve liquidity. By doing this, Hong Kong hopes to become a top destination for crypto innovators in general. Speculatively, SFC’s recent roadmap for crypto is likely influenced by ongoing discussions for a better regulatory framework in the region.

Coinspeaker recently reported that the SFC held its first Virtual Asset Consultative Panel (VACP) meeting to discuss crypto regulations. The panel will help the SFC set rules that support innovation while protecting investors.

To strengthen supervision, the SFC will hire 15 new employees, with eight focusing on crypto regulations.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.

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