Bitcoin trading banned for retail by Hong Kong regulators.
Only millionaires will be allowed to trade Bitcoin and cryptocurrencies in Hong Kong if the FSTB proposal is passed by the city's legislature.
Despite months of heavy uncertainty about possible bans, Hong Kong authorities have decided to outlaw retail trading in Hong Kong.
Reuters update on Friday shows the outcomes of its review on a potential trading restriction on retail cryptography which started in November 2020, the Financial Services and Hong Kong Treasury Bureau.
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When the section of its findings, the FSTB of Hong Kong pushed for a wide licensing system for crypto-exchanges and restricted only eligible trading. Under the Hong Kong Rule, skilled investors are only persons with accounts value 8 million Hong Kong dollars (approximately $1 million).
At most during the initial phases of the rigorous crypto-licensing program, the commercial crypto trading prohibition is mandatory for the FSTB. The FSTB aims to submit its findings to Hong Kong lawmakers to allow the proposal to be enforced.
If enacted, the new license scheme would also change the original crypto-exchange sign-up paradigm in the region.
The FSTB is likely to rule out the access of cryptocurrency by restricting crypto trading in Hong Kong to people with portfolios valued at least 1 million dollars. That excludes 93% of the population in the city.
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In the past, a number of stakeholders in the thriving crypto-industry in Hong Kong conveyed unhappiness with the program, claiming that the initiative was incompatible with the objective of the government to encourage financial creativity.
The Government of Hong Kong has also been working on empowering the Financial Services Authority of the city to suspend already approved crypto exchange licenses in another connection.
Chinese crypto press newsletter 8BTC News, which was twittering on Friday, showed the SFC could soon be granted the freedom to operate at will.
The SFC proposed a plan in November 2020 to extend its crypto control obligations above security tokens to include all the suppliers of virtual asset services.
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