In the past year, the cryptocurrency market has gone from unknown to hugely popular. In Hong Kong, at least, the open-source nature of blockchain and cryptocurrencies has encouraged the development of new exchanges, and this new industry has been dominated by exchanges that cater to professionals.
Hong Kong is one of the world’s most important centers for bitcoin and other virtual currency exchanges, and it is here that the top cryptocurrency trading platform in the world, OkCoin, has chosen to establish its operations. While many of the world’s largest bitcoin exchanges are still based in the United States, OkCoin is the first major exchange to be based in the Asian financial hub.
Bitcoin and other cryptocurrencies have been making headlines lately, with many in Hong Kong starting to accept the currency. However, exchanges in the city will only serve “high-net-worth” investors, who are required to register with the Securities and Futures Commission (SFC).. Read more about cryptocurrency companies in hong kong and let us know what you think.
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News from the Exchange
- Only professional investors will be able to use Hong Kong’s cryptocurrency exchanges.
- The FSTB has been conducting public consultations on potential modifications to the existing “opt in” approach.
- To be considered a professional investor, investors must have a portfolio worth at least HK $8 million.
Crypto exchanges located in Hong Kong must acquire licenses from the territory’s markets authority. According to the published consultation, it also limits its service offers to just professional investors.
The Financial Services and Treasury Bureau (FSTB) has been consulting on modifications to the existing “opt in” approach since last year. However, exchanges may seek to be licensed by the Securities and Futures Commission, but they are not required to.
To qualify for professional investor status in Hong Kong, investors must have portfolios worth at least HK $8 million ($1.03 million). Hong Kong, in particular, is home to a significant number of cryptocurrency exchanges, including some of the world’s biggest.
Furthermore, regulators and governments throughout Asia have differing perspectives on cryptos and the exchanges where they are exchanged. Crypto exchanges must be regulated in Singapore, although they may accept ordinary investors as customers. Furthermore, players in the crypto sector have opposed efforts to shield exchanges from interacting with ordinary investors.
Furthermore, the legislation enacted to do so may result in a crypto exchange exodus from the city, driving investors towards unregulated marketplaces. According to a Reuters article, the FSTB said it would propose legislation during the 2021-22 session of the city’s legislative assembly.
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According to the Hong Kong Securities and Futures Commission (HKCSC), the crypto exchange BitQuick Ltd. has ceased operations. As of this writing, the exchange remains offline. Its website displays a notice that the company will reopen sometime in January 2018. Whether BitQuick has been operating under an interim license or not, the HKSFC is likely to come down hard on the company.. Read more about hong kong cryptocurrency tax and let us know what you think.
Frequently Asked Questions
Can I trade crypto in Hong Kong?
Yes, you can trade crypto in Hong Kong.
Is crypto legal in Hong Kong?
Yes, cryptocurrency is legal in Hong Kong.
Is Coinbase legal in HK?
Coinbase is not legal in Hong Kong. It is a US-based company and as such, it has to abide by US laws which are not applicable to HK.
This article broadly covered the following related topics:
- hong kong-based crypto exchange
- cryptocurrency companies in hong kong
- hong kong crypto ban
- crypto.com hong kong
- hong kong crypto tax