Cryptocurrency trading is about to be opened up in Hong Kong to retail traders. Mainland Chinese residents and businesses are also keeping an eye on Hong Kong as a kind of "test bed" for crypto stuff. There is also talk of tokenised property trading - whereby assets are offered up for trading on the blockchain in form of STOs. This is kind of huge!

Securities and Futures Commission (SFC), similar to the SEC in the USA, regulate virtual asset trading platforms that offer services to Hong Kong residents. Security tokens, which are cryptocurrencies or tokens that are classified as securities fall under the regulatory purview of the SFC. Companies planning to offer security tokens or operate security token exchanges must seek authorisation or obtain a license from the SFC. The process is much clearer in Hong Kong than it is in the United States apparently, so there won't appear to be threats of lawsuits.

If a platform facilitates the trading of security tokens, it may need to apply for a license or gain approval from the SFC under the existing licensing framework, such as the Type 1 (dealing in securities) and Type 7 (automated trading services) licenses. The SFC does not regulate non-security tokens directly, unlike the SEC. However, if a cryptocurrency exchange offers trading of non-security tokens, it may still be subject to certain regulations, such as anti-money laundering (AML) and counter-terrorist financing (CTF) requirements - which are sensible and standard in most countries. The SFC also has some investor protection measures that must be adhered to.

In the video I talk about the effect of this imminent action will be on Bitcoin and cryptocurrencies generally.

Peace & Love,

Adé