Analyst: Hong Kong SEC to release criteria on crypto exchanges

The Hong Kong Securities and Exchange Commission (SEC) is ready to issue crypto exchange application guidelines, according to Dow Wan, founder of Primito Ventures.

Van said:

The Hong Kong SEC will announce the details of the cryptocurrency exchange application criteria within an hour. Hubei believes that HKex already has a backdoor, which will definitely give the Chinese a huge boost in becoming the first legal crypto exchange.The Hong Kong SEC’s decision to set a direction for local crypto exchanges comes after the Chinese government introduced a national blockchain initiative.

Is it big for the global crypto market?

In the last two years, since the Chinese government banned any cryptocurrency trading, most traders in the region are said to have entered the Hong Kong cryptocurrency exchange market.Many Chinese investors trade cryptocurrencies through a Hong Kong-based over-the-counter (OTC) trading platform, selling and buying stable coins such as Tether (USDT) for a small premium.

As Van said, the establishment of clear guidelines for crypto exchange applications could benefit exchanges that have been used by Chinese investors such as Hubei.

she said: “Hubei is an efficient Chinese exchange – run by a Chinese team locally in the mainland, primarily serving Chinese customers. It took a lot of hard work to build from scratch, and the hex shell is not cheap.It will also provide a strong legal basis for crypto exchanges to operate within Hong Kong, potentially resolving banking services issues that cryptocurrency trading platforms have struggled to address.

Still, George Harp, CEO of Butts Park, said the proposal is a year old and has not been considered by local communities as an important framework.

Harrap Note:”It simply came to our notice then. It is opt-in, applies to securities only and is limited to institutional users only. Everyone involved needs insurance that does not exist. No bitcoin exchange will be included because bitcoin is not secure.

Not just for Hobby

The SEC guidelines are expected to positively affect most Hong Kong-based exchanges, which will facilitate trade for investors, mainly in mainland China, if some local analysts predict that If this guide is not restricted to institutional users.This also means that since cryptocurrency exchanges in Hong Kong are allowed to operate on a stable basis with a clear regulatory framework, it will create a more practical environment for investors in China to invest in the asset class. ۔

However, the Chinese state-run newspaper People’s Daily reported in a November 4 column that the government is strongly opposed to speculation about cryptocurrency assets and that its positive stance on blockchain development is necessarily corrupt. Not the same as investing. The Daily said:”There is no doubt about the potential and direction of blockchain development. Speculations need to be stopped and, through a competitive environment, space must be opened for blockchain development.