Hong Kong to Propose Approved Set of Crypto Tokens for Retail Trading: Reuters

The CEO of the Hong Kong's securities regulator said only "highly liquid" assets will be on the list.

AccessTimeIconJan 11, 2023 at 12:18 p.m. UTC
Updated Jan 11, 2023 at 3:48 p.m. UTC

Hong Kong's Securities and Futures Commission (SFC) will allow retail trading in a select group of cryptocurrencies as it attempts to introduce regularity clarity to crypto, Reuters reported on Wednesday.

The watchdog plans to propose a subset of tokens that will be approved, the CEO of SFC, Julia Leung, said at a panel discussion at the Asian Financial Forum in Hong Kong.

Leung said only "highly liquid" assets will be on the list, according to a report by the South China Morning Post.

Hong Kong's virtual asset service provider regime will be focused on investor protection, the importance of which was hammered home by the collapse of FTX in November, according to Leung. The failed crypto exchange was once headquartered in Hong Kong.

"Virtual assets have in the past year gone from peak to low [price] levels. The good thing is that when the froth is taken out from the system as platforms and some tokens collapsed, it focuses investors and sellers' minds on investor protection," Leung said.

Signals out of Hong Kong on the territory's aspirations for its crypto regime have been mixed in recent months.

Hong Kong was showing signs of relaxing tough regulations to become a more crypto-friendly environment at times last year. The Financial Services and Treasury Bureau said in October that it was open to allowing retail customers to trade cryptocurrency or approving a crypto exchange-traded fund (ETF).

However, in November, Leung - then the deputy CEO of the SFC - called for tough rules to be implemented on crypto firms, saying how FTX's collapse had highlighted the volatility of digital assets and the threat posed by its links with traditional financial services.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Jamie Crawley

Jamie Crawley is a CoinDesk news reporter based in London.

Read more about