- Hong Kong is considering a plan to allow retail investors to trade cryptocurrencies.
- The new proposal could also allow future offerings of real estate security tokens.
- If it goes through, the plan would mark a further divergence from mainland China, which has banned crypto trading.
Hong Kong is weighing a proposal to allow retail investors to trade cryptocurrencies as leaders try to boost the financial hub’s global competitiveness.
The city previously proposed limiting crypto trades to professional investors, drawing criticism for stifling innovation while prompting startups and crypto firms to settle in cities like Dubai and Singapore.
“We want to make our policy stance clear to the global market to demonstrate our determination to explore fintech with the global virtual asset community,” Financial Secretary Paul Chan told the Hong Kong Fintech Week conference.
Hong Kong’s government will also examine the property rights for crypto assets as well as the process for legalizing smart contracts.
The city’s moves could lay the groundwork for offering real estate security token offerings (STOs), which are blockchain-derived tokens that allow property owners to receive income from real assets.
If Hong Kong’s plan goes through, it would mark a further divergence from mainland China, which has banned crypto trading.