Hong Kong is opening its doors to cryptocurrencies and the market is already showing optimism

In a note published this Tuesday (23), the Hong Kong Securities and Futures Commission has confirmed that cryptocurrency brokers will be able to operate in the region from June 1, 2023.

The market reacted well to the news and Bitcoin reached almost $27,500 after a daily high of 2.3%. However, it still works in a narrow price range. That is, the news was just a breather for the bulls.

The reason can be linked to the details of the ad. After all, the return of cryptocurrencies in Hong Kong should not be immediate and not all of them will be tradeable.

Hong Kong is opening to cryptocurrencies, but not fully

Overall, the Hong Kong Securities and Futures Commission (SFC) claims to have received 152 submissions from the industry, including companies and professionals, during the consultation period.

While some were happy with the requirements, others had doubts, the SFC pointed out.

“The majority of respondents agreed with our proposal to allow licensed operators of trading platforms to serve retail investors”noted the SFC, noting that it is a “series of robust measures to protect these investors”.

The new guidelines for the cryptocurrency sector have already been approved and will take effect next week, June 1. However, this adoption should not be immediate.

The main problem is that no cryptocurrency exchange has been approved so far. That is, the theory is great, but the practice is a little different.

“Despite the start of the regime on June 1, 2023, the SFC has not yet approved any virtual trading platforms to provide services to retail investors and most of the virtual trading platforms currently open to the public are not regulated by the SFC.”

News from Hong Kong leaves Bitcoin positive, but not enthusiastic

Many consider Hong Kong’s return to the cryptocurrency industry as the gateway for investors from mainland China. That is, the demand for Bitcoin and other cryptocurrencies could skyrocket, as could their price.

Yet this Tuesday (23), Bitcoin showed only a slight 2.3% increase, nothing out of the pattern of the past few days when it is in lateralization.

Besides the problem that no exchange is legal and up and running yet, another factor that may have influenced the market is that Hong Kong has been interested in cryptocurrencies for some time. In other words, the decision came as no surprise, but its confirmation was well received by investors.

Source: Live Coins

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