Hong Kong’s Securities and Futures Fee (SFC) Chair Julia Leung mentioned the fee will permit retail traders to commerce solely extremely liquid crypto belongings, South China Morning Put up 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 companies to retail traders.
Nonetheless, the newly appointed SFC Chair Julia Leung mentioned that buying and selling in crypto belongings will probably be restricted to extremely liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 belongings listed, however, the SFC won’t permit retail traders to commerce in all of them. Leung mentioned:
“We are going to set the factors that may permit retail traders to solely commerce in main digital belongings.”
The SFC Chair added that solely belongings with deep liquidity will probably be on the buying and selling listing. Will probably be dangerous for retail traders to commerce belongings with low liquidity as they’re extra susceptible to market manipulation.
She mentioned the regulator will work to make sure that authorised exchanges have enough liquidity to deal with risky market situations.
Moreover, the June 2023 regulatory guideline would require crypto exchanges to have danger administration, inside controls, and correct custodian preparations, with the intention to safeguard their prospects’ belongings.
Moreover, Leung mentioned the SFC will work with the Hong Kong Inventory Trade to permit listed exchanges to reveal their local weather dangers.
