The Legislative Council of Hong Kong passed legislation that will soon open up virtual assets to retail investors, and local financial services are lining up for licensing approval.
According to local reports, financial service providers in Hong Kong have already taken the first step to provide services for retail investors. It is said that brokers and financial institutions in the region need advice on licensing before the new law.
The Hong Kong legislature passed amendments to the Anti-Money Laundering (AML )and Anti-Terrorism Act (AMLO) in December 2022, which coincides with the region’s recent decision to expand crypto trading opportunities.
The amendment introduces a new licensing system for virtual infrastructure service providers, which will enable retail investors to purchase assets. Currently, digital businesses are only for professional entrepreneurs or entrepreneurs with proof of at least $1 million in liquid assets.
Victory Securities and Interactive Brokers are the first two brokers in Hong Kong to have an SFC to trade digitally for their professional clients. According to Robert Lui, Director of Digital Assets at Deloitte Hong Kong, retail investors will be able to invest in digital assets with large market capitalization and investment.
Currently, brokers in Hong Kong do not require a special license to serve clients in Bitcoin-based trading markets in Hong Kong. BTC ($16,707) and ether ETH ($1,218). However, those who will offer the exchange of resources will need additional approval from the SFC.
The new permit is scheduled for March 1 of this year. However, the date was later moved to June 1 to give infrastructure providers time to prepare properly.
It comes after the SFC recently appointed Julia Leung as its new CEO. Leung took office on January 1 and is expected to remain in power for the next three years. He previously talked about locking down local crypto standards.
A Hong Kong central bank official also said recently that he is reviewing investor protection standards.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up