FSTB (Hong Kong regulator) announced today that exchanges should be licensed in the near future. At the same time, the possibility of investments in the cryptos for retail investors will be limited
All investments should be available to professional traders. You can get this qualification if you have a portfolio with min 1 million dollars.
To implement their plans, the authorities will carry out a thorough purge on all cryptocurrency exchanges. Only those users who become qualified will be able to access it. Thus, most investors will not be able to trade.
Note that this idea is not new. Something similar was offered in the autumn of 2020. However, it did not go further than the idea. In May, looking at the situation in the cryptos market and the regulatory policy of China, the authorities decided to resuscitate the proposal.
The group, which protects the interests of traders and crypto-exchanges, said that this would jeopardize the security of investments in cryptocurrency. Because traders without a license will look for a way to earn and turn to unregulated platforms.
Despite this, the FSTB (regulator) published the results of the review on May 21st. According to the document, the authorities have concluded that exchanges should be licensed.
If the bill receives approval, the regulator will get full control over Hong Kong's cryptocurrency industry. It's not hard to guess what's going to happen.