- Hong Kong is thinking about a proposal to let small-scale investors to trade cryptocurrencies.
- Future token sales for real estate security products could also be permitted by the current plan.
- If implemented, the proposal would represent a further departure from mainland China, which has outlawed cryptocurrency trade.
In an effort to increase the financial hub’s competitiveness on the international stage, Hong Kong is considering a proposal to permit ordinary investors to trade cryptocurrencies.
The city has earlier suggested restricting cryptocurrency trading to accredited investors, which sparked complaints that it would stifle innovation and drive startups and crypto businesses to relocate to places like Dubai and Singapore.
Financial Secretary Paul Chan said at the Hong Kong Fintech Week conference, “We want to make our policy stance clear to the world market to express our resolve to explore fintech with the global virtual asset community.
The government of Hong Kong will also look at the legalization of smart contracts and the property rights for cryptocurrency assets.
The city’s actions might pave the way for real estate security token offers (STOs), which are tokens developed from blockchain technology that let property owners profit from actual assets.
A further departure from mainland China, which has outlawed cryptocurrency trading, would be made if Hong Kong’s plan were implemented.
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