Hong Kong has made a move in restructuring its fintech process by proposing a permit to enable retail investors to trade in cryptocurrencies and other crypto exchange funds. The Financial Secretary, Paul Chan, said in a keynote address broadcast to the Hong Kong Fintech Week Conference, that authorities will begin a process to prove their intention on giving retail investors access to virtual assets, in a considerable amount.
Property rights for tokenized assets will be reviewed by the Government alongside Smart Contracts to be legalised. These Smart Contracts are self-executing payments that function through inputs that are pre-programmed. This could pave way for Hong Kong, to be on the same page with Singapore, according to the Chief Compliance Officer for APAC at U.S. Crypto Exchange Gemini, Andy Mehan.
As a result of the development, real estate Security Token Offerings (STOs) could come on board also. This was said by players in the industry as STOs are blockchain-inclined tokens that function to enable holders acquire income or interests, generated from real estate assets. Although Singapore allows cryptocurrency trade from retail investors, its Central Bank has adopted measures that are targeted at discouraging the public from trading in cryptocurrencies. This has brought restrictions on advertising cryptocurrency to the public.
The Chief Executive Officer of Crypto Brokerage Metalpha, Adrian Wang, said that Hong Kong’s proposed move is positive as it sends out a strong message, that the nation is adopting new ways to regulate its capital market. This move will distinguish Hong Kong from its mainland China, which placed a ban on cryptocurrency trade. Currently, $1 is equivalent to 7.8492 Hong Kong dollars.
Prior to now, Hong Kong proposed limiting trade to professional investors, but it seems that an insight into planned rules for digital assets and start-ups to move to markets like Singapore and Dubai, has brought about the need for a change.