The Securities and Futures Commission (SFC) of Hong Kong proposed on  February 20 to “allow access to trading services by licensed Virtual  Asset trading platform providers for all types of investors, including  retail investors.”

Nevertheless, the proposal suggests that several requirements are  satisfied before cryptocurrency trading for ordinary investors is  resumed. These requirements include expertise and risk evaluations, as  well as perhaps imposing restrictions on the amount of exposure traders  are permitted to take.

According to Julia Leung, CEO of the SFC, “there is a clear  consensus among regulators internationally… to guarantee investors are  appropriately safeguarded and critical risks are successfully handled in  light of the recent volatility and the collapse of some large crypto  trading platforms around the world.”

Several cryptocurrency exchanges have already expressed interest in  setting up shops as regulated enterprises in Hong Kong. The  cryptocurrency exchange is requesting a license in the city, according  to a tweet from Huobi advisor Justin Sun on Monday. Other businesses,  including DBS Group Holdings Ltd. and Interactive Brokers, have already  stated their intentions to secure cryptocurrency business in the area.

Bloomberg claims that representatives from China’s Liaison Office have frequently attended crypto events in Hong Kong. Their visits and subsequent follow-ups regarding specific projects have all been courteous.

The Special Administrative Region of China is leveraging its legal  structure and markets to serve as a testing ground, just like Hong Kong  was China’s first test of free markets in the 20th century, according to  several stakeholders.

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