Hong Kong’s Financial Services and the Treasury Bureau (FSTB), has proposed a ban on crypto retail trading. According to a Reuters report the FSTB has concluded a conversation on a crypto ban which began back in November 2020.
The FSTB believes that the trading ban is essential in this early stage of the comprehensive crypto licensing system. The report shows that the bureau intends to present its decision to legislators in Hong Kong to speed up passing the proposal into law.
The FSTB also demands a broad licensing regime for crypto transactions and seeks to restrict trading to qualified investors. According to Hong Kong law, qualified investors are individuals who have portfolios worth 8 million Hong Kong dollars (about $1 million). By doing so, the bureau is sidelining about 93% of the city’s population and denying them access to cryptocurrencies.
Similarly, the Hong Kong government reportedly plans to authorize the city’s Securities and Futures Commission (SFC) to revoke licenses approved previously.
Stakeholders in the Hong Kong crypto industry have shown their displeasure with these plans. They explained that the move might destroy the government’s plan to give room for financial innovation.
Image Credits: Pixabay
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