Crypto Traders in Hong Kong to lose investment freedom under the upcoming regulatory policy
According to South China Morning post, a proposal by the Financial Services and the Treasury Bureau (FSTB) to ban retail investors to invest in cryptocurrency, will soon be introduced to legislative council and become a bill in this year. Besides limiting cryptocurrency trading to “professional investors”, i.e people who own HK$8 million assets, it requests all cryptocurrency trading platforms that operate in Hong Kong to apply for a license from Securities and Futures Commission(SFC), any unregulated trading platforms will commit a criminal offense and will be punished with a fine of HK$5 million and imprisonment for 7 years.
Hong Kong held the international financial centre title for years, however, Hong Kong government restricts the investment freedom of crypto-traders in the name of anti-money laundering and counterterrorist financing ordinance. According to the Heritage Foundation’s 2020 Index of Economic Freedom, Hong Kong ranked number two, losing the world’s freest economy title. Once the new licensing regime is introduced, anyone who trades cryptocurrency may need to through an oversea trading platform, and we believe that the ranking of Hong Kong will continue to drop.
TideBit will pay close attention to the effects brought by the license, and adjust the operation strategies once the bill is introduced. All trading activities upon Tidebit are under normal operations, and maintain as a leading trading platform in Hong Kong.