Cryptocurrency prices rose on Tuesday after Hong Kong’s securities regulator announced it would allow retail trading of certain crypto assets from June 1.
Bitcoin rose 1.7% to $27,293.64, according to Coin Metrics. The largest cryptocurrency traded in a small range throughout May, struggling to significantly break above $30,000 but remaining above $25,000. Ether advanced more than 2% to $1,855.28.
Late Monday evening, the Hong Kong Securities and Futures Commission said this would allow retail investors to trade certain crypto assets from next month on registered trading platforms. This decision was widely expected, with the announcement marking the end of request for public comments it published its proposed regulatory requirements for crypto retail in February.
The new guidelines are part of a broader effort by Hong Kong to become a global crypto hub. This ambition contrasts sharply with China, which banned crypto trading in 2021, as well as the United States where the regulatory stance towards crypto has turned hostile since the collapse of FTX.
“This news does not mean that a deluge of retailer buying power will enter the market in early June. Macro”. Newsletter “Now”.
The Hong Kong Securities and Futures Commission has already licensed two digital asset platforms, OSL and Hash Blockchain, and some are likely already actively trading overseas, Acheson said.
Oppenheimer analyst Owen Lau called Hong Kong “rather aggressive” for trying to become a crypto hub.
“It will continue to capture the community’s attention and attract more companies to establish offices in Hong Kong,” he said. “It’s hard to gauge the exact impact, but it has a long-term effect on capital flows and the movement of talent.”
Both crypto assets struggled to make meaningful moves in either direction in May. While the market lacked big catalysts and investors watched the debt ceiling negotiations closely, trading was relatively quiet and bitcoin started to behave like a risky asset again.
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