Hong Kong’s Securities and Futures Commission (SFC) announced that new regulations for virtual currency exchanges will go into effect on June 1, allowing retail investors to trade virtual currencies, but introducing a licensing system to ensure investor protection.After soliciting public input, the SFC established rules regarding the stocks to be listed and restrictions on the use of stable coins, and also stated that it is prohibited to offer interest or lending services or to give “gifts” related to trading certain stocks.
——Generated by ChatGPTNew regulations for virtual currency exchanges to be enforced.Hong Kong’s Securities and Futures Commission (SFC) announced on March 23 that it has completed its consultation on the regulation of crypto asset (virtual currency) exchanges.The consultation has been completed and, as previously reported, new virtual currency exchange regulations will go into effect on June 1, allowing individual investors to trade virtual currencies, but introducing a licensing system and other measures to ensure investor protection.The SFC had been soliciting comments on this regulatory rule for about a month, until the end of March, and the number of comments submitted during this period was 152; most of the comments were in favor of the exchanges obtaining business licenses to provide services to retail investors.According to the responses to the public comments, one of the rules that the SFC would impose on virtual currency exchanges would relate to the stocks they list, specifically including the requirement that stocks that retail investors can trade must have a high market capitalization and be included in at least two independent indices.This means, for example, that Bitcoin (BTC) and Ethereum (ETH), which are included in both the NASDAQ and Bitwise indices, can be listed.Others stipulate that retail investors cannot use stablecoins until stablecoin regulations are in place between 2023 and 2024, which warns of the risk that prices may not remain stable or that investors may not be able to redeem them.
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