Hong Kong’s Securities and Futures Fee (SFC) Chair Julia Leung stated the fee will permit retail buyers to commerce solely extremely liquid crypto belongings, South China Morning Publish reported.
Earlier on Jan. 9, Hong Kong’s Monetary Secretary Paul Chan introduced that from June 2023, the federal government will begin issuing licenses to permit crypto exchanges to supply buying and selling providers to retail buyers.
Nevertheless, the newly appointed SFC Chair Julia Leung stated that buying and selling in crypto belongings will likely be restricted to extremely liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 belongings listed, however, the SFC is not going to permit retail buyers to commerce in all of them. Leung stated:
“We’ll set the standards that will permit retail buyers to solely commerce in main digital belongings.”
The SFC Chair added that solely belongings with deep liquidity will likely be on the buying and selling record. It will likely be dangerous for retail buyers to commerce belongings with low liquidity as they’re extra vulnerable to market manipulation.
She stated the regulator will work to make sure that permitted exchanges have ample liquidity to deal with risky market circumstances.
Moreover, the June 2023 regulatory guideline would require crypto exchanges to have threat administration, inside controls, and correct custodian preparations, in an effort to safeguard their prospects’ belongings.
Moreover, Leung stated the SFC will work with the Hong Kong Inventory Trade to permit listed exchanges to reveal their local weather dangers.
