In an exciting development for the cryptocurrency market, the Hong Kong Securities and Futures Commission (SFC) announced today that licensed platforms will soon be able to serve retail investors. The regulatory ruling is set to take effect on June 1, 2023, opening up new investment opportunities for Hong Kong residents.
Godfrey BenjaminOne intriguing aspect of this regulatory update is the inclusion of specific requirements for tokens to be eligible for trading. The Hong Kong government stipulates that tokens must be relevant virtual assets with significant market capitalization and must be listed in at least two acceptable indices issued by independent providers.
Interestingly, the Cardano token, ADA, a well-known digital asset, stands to benefit from this development. As per the requirements, Cardano may be immediately available for trading by Hong Kong investors. This adds to the growing list of cryptocurrencies featured in prominent crypto indices. The five major crypto indices now encompass the Bloomberg Galaxy Crypto Index (BGCI), 21Shares Bitcoin Suisse Index, Bitwise 10 Crypto Index, Nasdaq Crypto Index and WisdomTree Crypto Index. Notably, both Bitwise and WisdomTree indices include the Cardano token.
While the full list of eligible tokens is yet to be confirmed, it is highly likely that popular cryptocurrencies such as Bitcoin and Ethereum will be available for trading in Hong Kong, as they are already part of all five crypto indices. Additionally, four out of the five indices include Litecoin and Polkadot, while three indices feature Solana and Bitcoin Cash.
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