Hong Kong’s Securities and Futures Commission (SFC) Chair Julia Leung stated the fee will allow retail buyers to commerce only highly liquid crypto assets, South China Morning Post reported.
Earlier on Jan. 9, Hong Kong’s Financial Secretary Paul Chan announced that from June 2023, the federal government will begin issuing licenses to allow crypto exchanges to provide buying and selling companies to retail buyers.
However, the newly appointed SFC Chair Julia Leung stated that buying and selling in crypto assets will probably be restricted to highly liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 assets listed, however, the SFC is not going to allow retail buyers to commerce in all of them. Leung stated:
“We will set the standards that will allow retail buyers to only commerce in main virtual assets.”
The SFC Chair added that only assets with deep liquidity will probably be on the buying and selling record. It will probably be dangerous for retail buyers to commerce assets with low liquidity as they’re extra inclined to market manipulation.
She stated the regulator will work to be sure that accepted exchanges have enough liquidity to deal with unstable market circumstances.
Furthermore, the June 2023 regulatory guideline would require crypto exchanges to have danger administration, inner controls, and correct custodian preparations, in order to safeguard their prospects’ assets.
Additionally, Leung stated the SFC will work with the Hong Kong Stock Exchange to allow listed exchanges to disclose their local weather dangers.