An offer came up in Hong Kong today to limit cryptocurrency exchanges to only experienced traders. While the cryptocurrency markets are still affected by the recent price drop and other bad news, one wonders how this proposed latest regulation will affect the market.
Breaking news released by Reuters revealed that the Hong Kong Financial Services and Treasury Bureau is planning to introduce new legislation in the upcoming city legislature.
The legislation in question proposes that all Hong Kong cryptocurrency exchanges can only provide services to professional investors. Considering the recent bearish movement for the Bitcoin and cryptocurrency market, this news is definitely not a positive development. Currently, Hong Kong law requires that a professional investor be classified as an individual with a portfolio of $ 8 million Hong Kong, which equates to $ 1.03 million. This amount is a value that is likely to reduce cryptocurrency trading to a fairly small and elite group.
Many cryptocurrency exchanges operate in Hong Kong, with some even being among the largest globally. In addition, if the law proposal is accepted, the stock exchanges with headquarters in Hong Kong will have to obtain a license from the city’s regulatory agency. Cryptocurrency is being adopted much more in Asia than elsewhere, so investors in the region may be anxious.
Some names from the crypto and technology industries are against the proposed regulation, others think that blocking retail investors from trading cryptocurrencies will likely push exchanges out of Hong Kong and into other areas of their wealth.
The blow came after the recent Chinese government announcement banning all payments in the country through cryptocurrencies. It is also interesting to see news that worries investors, one after another.