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Hong Kong plans to allow retail investors to trade digital tokens like Bitcoin and Ether.
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The city's Securities and Futures Commission will license exchanges for the trading of large-cap tokens, but no specific tokens were named.
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Retail investors will have to pass knowledge tests, risk profiles, and have reasonable limits on exposure.
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The consultation period for this new licensing regime will end on March 31, with retail trading to begin on June 1.
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Hong Kong is pivoting to a pro-crypto stance, hoping to restore the city's credentials as a financial center.
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Officials are aiming to learn from last year's digital asset rout and a spate of global bankruptcies to create a mandatory regulatory framework that can attract firms and protect investors.
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No specific crypto indexes were specified as a reference point for allowable tokens.
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Exchanges will monitor listed assets to ensure that they qualify for trading by individual investors.
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Hong Kong has already allowed exchange-traded funds investing in CME Group Bitcoin and Ether futures and recently sold digital green bonds.
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Digital asset executives are drawn to Hong Kong, Dubai, and Europe as friendlier policy stances compared to the US.