Regulators in Hong Kong are taking steps to ensure the safety of retail investors in the cryptocurrency market. The Securities and Futures Commission (SFC) is creating a list of approved crypto assets for non-professional investors to trade in.
SFC’s CEO, Julia Leung Fung-yee, stated that the whitelisted crypto tokens will be highly liquid and deemed safe enough for retail traders.
The list will only include major virtual assets, as the SFC does not plan to allow retail investors to trade in all of the over 2,000 products available on virtual asset platforms.
In addition to the approved list, the SFC will also be consulting with the public on regulations for retail crypto trading.
A consultation paper will be published before the end of Q1 2023 as part of a broader regulatory push that will also include new licensing protocols for crypto exchanges and other virtual asset service providers.
The goal of these regulations is to protect investors who have been affected by the current bear market and have lost $50 million to crypto scams as of August 2022.
The SFC’s efforts are part of Hong Kong’s ongoing efforts to create a safe and regulated cryptocurrency market for its citizens.