Hong Kong’s Securities and Futures Fee (SFC) Chair Julia Leung stated the fee will enable retail buyers 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 buyers.
Nevertheless, the newly appointed SFC Chair Julia Leung stated that buying and selling in crypto belongings will probably be restricted to extremely liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 belongings listed, however, the SFC is not going to enable retail buyers to commerce in all of them. Leung stated:
“We are going to set the factors that may enable retail buyers to solely commerce in main digital belongings.”
The SFC Chair added that solely belongings with deep liquidity will probably be on the buying and selling listing. It will likely be dangerous for retail buyers to commerce belongings with low liquidity as they’re extra susceptible to market manipulation.
She stated the regulator will work to make sure that authorized exchanges have enough liquidity to deal with unstable market situations.
Moreover, the June 2023 regulatory guideline would require crypto exchanges to have threat administration, inner controls, and correct custodian preparations, so as to safeguard their prospects’ belongings.
Moreover, Leung stated the SFC will work with the Hong Kong Inventory Change to permit listed exchanges to reveal their local weather dangers.