Hong Kong's finance regulator has issued a new consultation paper outlining numerous additional requirements for allowing ordinary investors to return to crypto, crypto media outlet Decrypt reported on February 20.

The suggestion suggests that certain requirements be satisfied before retail crypto trading is reopened, including knowledge and risk evaluations and potential limits to how much exposure traders are permitted.

Trading platforms would evaluate the team behind a token, marketing materials, and legal concerns and determine "how resistant the token's network is to typical attacks." Following that, the token pool looks very thin, with the Commission suggesting that only "large-cap virtual assets" be eligible for listing.

Notably, The SFC permitted individual traders to start trading derivative products and crypto exchange-traded funds last year (ETFs), taking a major step towards Hong Kong’s goal of becoming a crypto hub.

The regime is set to take effect on June 1, 2023.

Source: DECRYPT