Crypto Investors Can Trade Under New Hong Kong Rules from June 1st 

A number of safeguards will be employed, like knowledge tests.

Fancy waiter offering a large bitcoin infront of the symbol of Kong Kong.
Created by Gabor Kovacs from DailyCoin
  • Hong Kong will test out its retail-focused crypto regime starting June 1.
  • The regime will allow for the buying and selling of major coins only.
  • Hong Kong is going crypto-positive, while much of Asia goes the other way.

Hong Kong has made a concerted effort to be a welcoming crypto hub in Asia concerning regulations. The region rapidly deployed a new crypto framework and licensing regime for retail investors and will soon make them available. 

From June 1, retail investors can trade crypto under Hong Kong’s new regulatory framework for crypto. This follows the conclusion of the consultation on retail participation and ushers in a new era for retail traders in the region. 

Welcoming the Major Coins

The new framework focuses on a licensing regime for exchanges geared toward retail consumer protection, obligating platforms to follow a number of regulations and requirements. 


These licensed platforms and exchanges can offer the buying and selling of significant coins, like BTC and ETH, to individual investors starting June 1, when the licensing regime begins.

By appealing to individual retail investors, with the initial opening of trading in popular and well-established coins, Hong Kong is making good on its promise to embrace digital assets and regain its financial hub status. 

The city’s Securities and Futures Commission (SFC) is looking to strike a balance between offering citizens easy access to crypto while also ensuring exchanges “comply with a range of robust investor protection measures covering onboarding, governance, disclosure and token due diligence, and admission, before providing trading services to retail investors.”

Individual Safeguards

Some of the rules and safeguards that retail investors will face include knowledge tests, appropriate risk profiling, and reasonable exposure limits.


Additionally, the regime calls for coins to be included in at least two acceptable, investible indexes from independent providers, one with experience in the traditional financial sector.

An Oasis in Asia

Hong Kong was seen as an early hub for crypto before mainland China’s implementation of a crypto ban in 2021. However, it is now moving differently from its Asian counterparts. 

Singapore has plans to slow retail-investor participation in crypto while South Korea is working on its own crypto legislation following a bevy of poorly handled crypto incidents.

Elsewhere, Malaysia has gone after Huobi Global for operating “illegally” and ordered it to stop activities in the country, while the Philippines is trying to stop Gemini and its derivatives trading platform from operating. 

On the Flipside

  • With the introduction of crypto-friendly regulations, it has been revealed that around 80 crypto firms are now exploring moving to the region to take advantage of the friendly environment.

Why This Matters

There is a global trend of regulators from different nations implementing their stance on crypto – much of it being negative. If countries like Hong Kong succeed in becoming a safe space for crypto firms, it could be hugely beneficial for these nations. 

Read more about the Hong Kong regulations:

Hong Kong Regulators Welcome Crypto Platforms with New Laws.

Read more about the Tornado Cash hack:

Tornado Cash Hack: Hacker Offers to Revert Attack While Mixing 360 ETH.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Darryn Pollock

Darryn Pollock is a South African-born, UK-based journalist and content writer for DailyCoin with a focus on regulation and legislation revolving around the cryptocurrency space. He has covered the evolving crypto regulatory space, and examined how the US has approached law-making to offer protection in the growth of innovation. Darryn values traditional journalistic principles of truth, accuracy, independence, fairness, and impartiality, and has a Bachelor of Arts degree in Journalism and Law from Rhodes University in South Africa.