The Hong Kong Securities and Futures Commission (SFC) said today that authorised platforms would soon be allowed to cater to retail investors, which is an exciting step for the cryptocurrency sector. On June 1, 2023, the regulatory decision is expected to go into force, providing new investment options for citizens of Hong Kong.
The addition of explicit criteria for tokens to be allowed for trade is an exciting feature of this regulation upgrade. Tokens must comply with Hong Kong government regulations, have a sizable market value, and be published in at least two reliable indexes created by independent sources.
Interestingly, this move might be advantageous for the widely used digital asset known as the Cardano coin, ADA. Cardano can be instantly available for trade by Hong Kong investors according on the conditions. This increases the number of cryptocurrencies included in well-known crypto indexes. The Bloomberg Galaxy Crypto Index (BGCI), 21Shares Bitcoin Suisse Index, Bitwise 10 Crypto Index, Nasdaq Crypto Index, and WisdomTree Crypto Index are presently the five main cryptocurrency indexes. Notably, the Cardano cryptocurrency is included in the Bitwise and WisdomTree indices.
Although the whole list of qualifying tokens has not yet been determined, it is quite possible that well-known cryptocurrencies like Bitcoin and Ethereum, which are already included in all five crypto indexes, will be accessible for trading in Hong Kong. Additionally, Litecoin and Polkadot are featured in four of the five indexes, while Solana and Bitcoin Cash are featured in three indices.
