- According to a statement made by a group of cryptocurrency exchange owners, crypto users in Hong Kong can move to “unregulated” and more risky places to trade their digital assets if the government exercises stricter controls over the industry.
According to a statement made by a group of cryptocurrency exchange owners, crypto users in Hong Kong can move to “unregulated” and more risky places to trade their digital assets if the government exercises stricter controls over the industry.
Way out of regulation
The statements came months after the Hong Kong Financial Services and Treasury Bureau proposed to limit retail investors from trading digital currencies. The offer states that only “accredited” investors with a certain net worth and capital can invest in the market.
The Bureau of Financial Services and Treasury recommended in its consultation paper that authorities expand the anti-money laundering and counter-terrorism financing regulation to include crypto exchanges and their users.
Stock markets are cautious
However, local businesses operate differently. Exchanges believe users will simply switch to unregulated firms to run their operations, according to Global Digital Finance. Think tank BitMEX, Huobi, OKCoin and Coinbase are among these cryptocurrency exchanges.
Global Digital Finance Advisory Head Malcolm Wright said in a statement on the subject:
“Limiting cryptocurrency trading to professional investors is different from what we see in other jurisdictions such as Singapore, the UK, and the US where retail investors can buy and sell virtual assets.”
Wright, who joined the 100x Group, the company behind the derivatives exchange BitMEX, in October, said that users will seek overseas businesses to exchange their funds without being affected by any potential regulations.
The regulation should be justified
Other organizations share these thoughts. The Bitcoin Association of Hong Kong, defending its rights with the Bitcoin and crypto regulations in the city, said any law should clearly justify why crypto investors should be treated differently from precious metal traders in the city.
“Any obstacle put to restrict the sale or purchase of Bitcoin must be reasonable and justified. Individuals need to be able to use and accept Bitcoin as payment. “