According to local media, financial service companies in Hong Kong have already begun to offer services to regular investors. Ahead of new regulations, brokers and fund managers in the area are allegedly seeking advice on licensing requirements.
In December 2022, lawmakers in Hong Kong approved a change to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) that is in line with the region’s current attitude on opening up cryptocurrency trade.
The amendment establishes a new licensing program for companies that offer virtual asset services, enabling ordinary investors to trade in virtual assets. Trading in digital assets is now limited to professional investors who can show they have at least $1 million in bankable assets.
Brokers on Crypto access to retail investors
The first two brokers in Hong Kong to trade digital assets for their corporate clients were Victory Securities and Interactive Brokers. According to Robert Lui, the digital asset leader at Deloitte Hong Kong retail investors will probably be allowed to trade digital assets that have a significant market capitalization and liquidity.
Currently, Hong Kong-based brokers can serve clients who trade Bitcoin-based exchange-traded fund futures that are listed on the Hong Kong Stock Exchange without a particular license.
Those who offer virtual asset trading, however, will require further SFC approval. At first, the new license was supposed to go into effect on March 1 of this year. To offer virtual asset service providers more time to properly prepare, the deadline was later moved to June 1.
This follows the SFC’s recent selection of Julia Leung as its new CEO. Leung’s term officially began on January 1 and will last over the following three years. She has previously advocated for stricter local cryptocurrency regulations.
Recently, a Central Bank of Hong Kong executive stated that the organization was looking to consider investor protection laws.
