Hong Kong is moving toward a powerhouse for cryptocurrencies with its regulatory framework to legalize retail trading.
According to a report by Bloomberg, retail trading will be permitted under a proposed mandatory licensing program for cryptocurrency platforms that is expected to take effect in March 2023. These sources asked to remain anonymous because the information is private.
The unnamed sources claim that although regulators want to allow listings of larger tokens, they won’t support specific coins like Bitcoin or Ether. They added that the details and timeline are still being worked out because a public consultation must come first.
At a fintech conference that is expected to begin on Monday, the government is expected to elaborate on its recently stated objective of developing a leading crypto hub. The initiative is part of a larger effort to rehabilitate Hong Kong’s reputation as a financial hub after years of political unrest.
According to Gary Tiu, executive director at cryptocurrency company BC Technology Group Ltd., “introducing mandatory licensing in Hong Kong is just one of the important things regulators have to do.” “They can’t effectively ignore the demands of retail investors forever.“
On the 24th of September, 2021, the People’s Bank of China (PBoC) formally unveiled a series of new measures to counter the uptake of cryptocurrencies in China, including encouraging stronger inter-departmental cooperation in stifling cryptocurrency activity.
Recall that Rishi Sunak, the Prime Minister of the United Kingdom, on Monday (October 24, 2022), reaffirmed that he would make the UK a pioneer in the field of crypto asset technology, making it more straightforward for businesses to expand, innovate, and invest.
In April 2022, the U.K government made its first announcement to become a “global crypto asset technology hub” Sunak said :
“It’s my ambition to make the UK a global hub for crypto asset technology, and the measures we’ve outlined today will help to ensure firms can invest, innovate and scale up in this country,”
This declaration may have sparked Hong Kong’s sudden declaration to turn Hong Kong into a global crypto hub.
Is it safe to assume that Hong Kong and the U.K. government are competing to become the world’s central hub for cryptocurrency?
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