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Crypto Exchanges Soon Allowed to Open to Retail Users in Hong Kong

Starting June 1, 2023, Hong Kong is all set to open its doors to retail crypto traders. The Securities and Futures Commission (SFC), Hong Kong’s financial watchdog, announced this groundbreaking move following an extensive consultation within the industry.

With 152 responses from the industry’s main players, professional associations, and consultancy firms, the SFC’s decision highlights Hong Kong’s commitment to technological innovation and robust financial markets.

The New Regulatory Framework

Coming into effect on June 1, 2023, the new regulations encompass crucial elements such as asset custody safety requirements, cybersecurity standards, avoidance of conflicts of interest, and customer asset segregation. Digital Asset Service Providers (DASP) can apply for licenses provided they comply with these directives. Businesses not willing to adhere to these guidelines must plan an orderly closure in Hong Kong.

A Bold Move: The Impact on Crypto Exchanges

While the SFC is yet to greenlight any specific crypto trading platform for retail investors, several crypto exchanges, including Huobi Global, OKX, and, have already submitted applications for Virtual Assets Service Provider (VASP) licenses. This significant development underlines Hong Kong’s ambition to become a leading hub for virtual assets and technological advancements.

Prioritizing Investor Protection

The SFC aims to instill market integrity and foster investor trust by implementing strict measures to protect investors’ interests. The proposed measures, derived from the industry’s input in the consultation paper, include promoting good governance practices, ensuring suitability during the onboarding process, and conducting enhanced token due diligence.

SFC’s Commitment to a Secure Investment Environment

SFC’s CEO, Julia Leung, underlines Hong Kong’s commitment to a regulated, transparent crypto market. The guidelines for operators of digital asset trading platforms are designed to offer robust investor protection and manage risks.

She further stated :

“Providing clear regulatory expectations is key to fostering responsible development. Hong Kong’s comprehensive virtual asset regulatory framework follows the principles of ‘same business, same risks, same rules’, and aims to provide robust investor protection and manage key risks.”

What Does This Mean for Investors?

With this move, Hong Kong takes another step toward becoming a significant player in the global virtual asset market. The inclusion of retail investors opens up new investment opportunities and could provide a significant boost to the crypto market.

This historic move by Hong Kong to open crypto trading to retail investors will inevitably set the pace for other nations considering a similar path. The well-regulated and transparent approach adopted by the SFC should encourage investors to explore the potential of crypto investments, all while keeping their security at the forefront.

Key Points

When will Hong Kong’s new crypto trading regulations come into effect?

The new guidelines will take effect starting June 1, 2023.

Who can apply for the new licenses?

Digital Asset Service Providers (DASP) who comply with the new guidelines can apply for licenses.

What measures are being taken to protect investors?

The SFC has proposed measures such as promoting good governance practices, ensuring suitability during the onboarding process, and conducting enhanced token due diligence to safeguard investors.


Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
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