Hong Kong’s Securities and Futures Fee (SFC) Chair Julia Leung stated the fee will enable retail traders to commerce solely extremely liquid crypto belongings, South China Morning Publish reported.
Earlier on Jan. 9, Hong Kong’s Monetary Secretary Paul Chan introduced that from June 2023, the federal government will begin issuing licenses to permit crypto exchanges to supply buying and selling providers to retail traders.
Nevertheless, the newly appointed SFC Chair Julia Leung stated that buying and selling in crypto belongings can be restricted to extremely liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 belongings listed, however, the SFC won’t enable retail traders to commerce in all of them. Leung stated:
“We’ll set the factors that will enable retail traders to solely commerce in main digital belongings.”
The SFC Chair added that solely belongings with deep liquidity can be on the buying and selling listing. It is going to be dangerous for retail traders to commerce belongings with low liquidity as they’re extra liable to market manipulation.
She stated the regulator will work to make sure that permitted exchanges have ample liquidity to deal with unstable market circumstances.
Moreover, the June 2023 regulatory guideline would require crypto exchanges to have danger administration, inside controls, and correct custodian preparations, so as to safeguard their clients’ belongings.
Moreover, Leung stated the SFC will work with the Hong Kong Inventory Trade to permit listed exchanges to reveal their local weather dangers.