SCMP Editorial

Editorial | Hong Kong can look forward to real results with virtual asset trading

Proposals allowing retail investors to trade in big-cap cryptocurrency tokens on licensed platforms with regulatory oversight would enhance the city’s reputation for prudent financial innovation

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A visual representation of the digital cryptocurrency Bitcoin. Bitcoin is believed to be one of the cryptocurrencies that the SFC allow retail investors to dabble in. Photo: Getty Images

SCMP Editorial

Published: 6:45am, 22 Feb 2023

Today the financial secretary will deliver what is effectively the first post-Covid budget, if that is defined by a return to near normal life.

People will be looking for a positive vision of the future. A taste may have surfaced ahead of the budget in proposals by the securities watchdog to allow retail investors to trade in big-cap cryptocurrency tokens on licensed virtual asset platforms, which would provide regulatory oversight.

This comes as governments around the world start to rein in the freewheeling cryptocurrency market. It would enhance Hong Kong’s reputation for prudent financial innovation and investor protection.

At the same time it would be a step towards fintech/Web3 becoming an engine for the city’s economic development, along with the enormous potential of green finance.

The proposal by the Securities and Futures Commission (SFC) for retail trading and welcoming crypto exchanges to set up here would serve both ends. It is important to the city’s future as a regional and global financial hub.

02:12

What are cryptocurrencies?

There are between 22,000 and 50,000 cryptocurrencies in circulation, depending on who you listen to. The SFC plan will allow retail investors to dabble in “large coins”.