Crypto regulation is not strange, at least to countries that have a mass concentration of crypto enthusiasts. Being an enthusiast is not enough as one needs to show devotion by investing in several digital assets; this is where crypto exchanges come in. Despite the potential that crypto promises, some countries are moving to ban the trade of digital assets in their respective countries, citing some regulations to clampdown on illicit activities and users.
Hong Kong is one of such countries that have proposed a ban on retail crypto activities in the country banned. Moving to warn the region against such moves, Global Digital Finance has reminded the country of some of the dangers that their decision will birth in the coming days.
The group has been vocal against unfavorable crypto laws in the region
According to the crypto advocacy group, if the country eventually bans crypto traders from accessing digital assets, they will eventually find their way into the arms of unregistered and unlicensed crypto exchanges. Over the years, the group has been known to be the voice behind famous crypto exchanges that have emanated from the Asian region. Crypto exchanges like Huobi, OkCoin, and BitMEX are members of the group.
The latest advice is coming after a recent memo circulated by the Financial Services and Treasury Bureau, citing the need to curb retail crypto trading in November. The agency also mentioned that the new regulation was also born out of a recent advice that the Financial Action Task Force gave to the government.
Even though the bill has not been passed into law in the main time, the time for public involvement is slowly elapsing, and time is running out. Ever since the beginning of time, Hong Kong has provided a haven to several crypto exchanges. The Asian region has witnessed major crypto exchanges, with most people noting that it is advisable to enter the crypto market through the region.
The group wants the government to explain why they are banning retail trading
Looking critically into this law, one would note that a huge percentage of the region’s trading population falls under this category. Statistically, Citibank said that about 504,000 citizens of Hong Kong hold crypto. This means that 7% of the total population of Hong Kong can be classified as professional traders.
Giving their review of the proposed law, experts have noted that this approach is a new one because several countries have regulated crypto but not like this. Even though the United States and the United Kingdom have regulated crypto trading, they still allow their traders to buy and sell crypto.
The United Kingdom has also asked all the crypto exchanges that are carrying out their operations in the region to register and gain a license of operation if they want to continue in the country. Even though the country has moved to ban derivates trading, spot trading is something that the country has promoted. The body further claims that if people are going to be banned from accessing crypto, the government should justify it.