The Hong Kong Securities and Futures Commission (SFC) has proposed a list of crypto-assets that may be available to retail investors, said the head of the regulator Julia Leung during the Asian Financial Forum in Hong Kong, as reported by Reuters.
The Hong Kong government is introducing a digital asset regulation regime (VASP) to make the city more favorable to the cryptocurrency industry. Last October, authorities announced that retail cryptocurrency transactions are now legal, and individuals with a wealth of at least $1 million can conduct such transactions.
"When platforms and some tokens collapsed because of low rates, the attention shifted to keeping investors safe," Leung said.
Investor security will be emphasized under the new VASP regime, she added. Besides, according to Leung, tokenization of investment funds and bonds will be carried out by the SFC.
In December, the Hong Kong Legislative Council adopted a law on virtual assets that requires all crypto-service providers to be licensed by June 1, 2023, or face a fine of up to $5 million or seven years in prison.
