• Hong Kong is soon to launch a licensing regime for crypto exchanges, making it easier for retail investors to trade major cryptocurrencies.
• HedgeUp (HDUP) is preparing ahead of rivals RenQ (RENQ) and Shiba Inu (SHIB), in order to comply with the new regulations.
• The proposed regulatory framework was released in February and received lots of responses during its public consultation process.
Hong Kong Moving Forward With Crypto Licensing
Hong Kong is moving forward with a highly anticipated licensing regime as it looks to become a crypto hub in Asia. The regime, which was proposed in February 2023, is expected to launch next month. This will allow retail investors to trade major cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC). The Securities and Futures Commission has issued guidelines that operators must follow regarding due diligence on tokens, liquidity checks, and criteria for acceptable tokens.
HedgeUp Prepares Ahead of Rivals
Project HedgeUp (HDUP) has quickly gone on to become a top crypto token ahead of rivals RenQ (RENQ) and Shiba Inu (Shiba Inu). It is preparing to launch in compliance with whatever regulation will be prevailing at the time.
Proposed Regulatory Framework
The proposed rules were made available back in February and invited public comments until the end of March. At a recent Bloomberg event, SFC CEO Julia Leung said that the proposal had received lots of responses during its public consultation process. This reflects Hong Kong’s effort to adopt a more friendly approach towards cryptocurrencies.
How Will This Affect Crypto Exchanges?
The new regulations are expected to bring many changes for crypto exchanges operating within Hong Kong’s borders. They will be required to conduct due diligence on tokens they offer, monitor them regularly, and verify investor portfolios before allowing trades worth over HK$8 million (approximately one million dollars). Furthermore, all tokens offered must meet the SFC criteria specified by the regulator.
As regulation efforts ramp up around the world, HedgeUp (HDUP) is gearing up to launch in compliance with whatever regulation prevails at the time while taking into account its rivals‘ activities such as those from RenQ (RENQ) and Shiba Inu (SHIB). Hong Kong’s move towards increased regulation may open up opportunities for the region’s cryptocurrency industry but also brings about certain challenges that must be met if success is desired