The VASP system that has just come into effect in Hong Kong is actually quite complicated for many retail investors. Although many media have already shared or analyzed the details in depth, I will simply share the key issues that everyone will be interested in😙
On June 1 just now, the Hong Kong government officially implemented the cryptocurrency exchange licensing system. Exchanges that have been operating before this date but have not been licensed will be given a one-year grace period, which can start from June 2023. It will continue to operate in Hong Kong from 1st to May 31st, 2024.
Question 1: Can retail investors invest in cryptocurrencies?
"Theoretically" it is not possible, because retail investors need to use licensed exchanges, but it is expected to take about 3 to 6 months before the first batch of licensed exchanges will be available, so from a legal perspective In other words, retail investors are still unable to trade on unlicensed exchanges in Hong Kong.
Question 2: Can I use an unlicensed exchange?
The answer to question one extends here. The government seems to have made a concession. As long as it operates in Hong Kong before June 1, applies for a license from the Securities and Futures Commission, and complies with relevant regulations, the exchange can continue to operate in Hong Kong within one year. Hong Kong operation. So logically, you can still use existing exchanges.
Question 3: Is there no pledge or contract?
Yes, the government will not relax any form of income and lending services, and futures contracts and derivatives will not be provided to retail investors. I believe that many exchanges that have applied for licenses will adjust their services and financial products in Hong Kong, especially .
Question 4: What coins can I buy? Can I use stablecoins?
The government stated that only cryptocurrencies with larger market capitalization can be traded initially, such as Bitcoin, Ethereum and other large cryptocurrencies. However, OKX now supports Hong Kong users to buy, sell and hold 16 major cryptocurrencies, reflecting that there may still be gray areas in the definition. .
As for stablecoins, you can see that common stablecoins such as USDT can still be used. This may be because the "stablecoin regulatory system" being studied by the Hong Kong Monetary Authority will only be implemented in 2024, so there is no tight supervision now.
Cryptocurrency self-media from Hong Kong🇭🇰
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