Hong Kong’s top market regulator just announced they’re loosening crypto trading rules to boost activity in the city. Julia Leung from the Securities and Futures Commission said at Fintech Week that licensed crypto platforms can now connect local entities with their global order books instead of being stuck in a ring-fenced Hong Kong-only system.
This is actually a pretty big deal because it brings crypto trading in line with how traditional assets work locally. Hong Kong has been trying to become a regional crypto leader for three years now with mixed results. They’ve got a licensing regime for platforms, Bitcoin and Ethereum ETFs, and digital asset funds, but trading activity still lags way behind places like the US, where Trump’s been crypto-friendly.
Leung admitted they’re “on the tougher side” when it comes to regulation but said once they’re confident investors are protected, they do relax rules like they just did with global liquidity access.
The SFC is also finalizing rules for crypto dealer and custodian licenses, while Hong Kong’s central bank will hand out the first stablecoin issuer licenses next year. Down the road, they’re considering letting licensed crypto brokers tap into global liquidity pools too, though Leung didn’t give a timeframe.
There are currently 11 fully licensed crypto exchanges with the SFC , plus 49 brokers allowed to provide virtual asset services. The new rules could attract giants like Binance and Coinbase to set up shop with broker licenses.
Conclusion
Hong Kong is allowing licensed crypto exchanges to access global order books instead of Hong Kong-only trading, easing regulations to boost activity and compete with US crypto adoption.
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