In May 2023, the Hong Kong Securities and Futures Commission (SFC) stated that it would once more permit crypto trading for retail clients within its jurisdiction as of June 1. This decision comes after an extensive consultation process with stakeholders in the period from 2021 when a crypto trading ban was imposed in Hong Kong and China.
Despite lots of hype surrounding Hong Kong’s lifting of its crypto ban, just two crypto exchanges have so far been registered by the SFC. These exchanges include HashKey Pro and OSL Exchange. Nevertheless, Huobi confirmed last week that it has already applied with the SFC to offer its services in Hong Kong. On the other hand, OKX has revealed it will be providing crypto trading services to Hong Kong residents through its app.
So far, Binance is yet to announce that it plans to register with the SFC to provide its services in Hong Kong. Their business closed shop in China in 2017 when cryptocurrency exchanges were banned.
Crypto is still banned in mainland China. But, Hong Kong retains an independent legal system, despite recent developments that saw China taking increased control over the former British colony. The controls include the abolishing and banning of certain speech and taking full control of its parliament.Buy Crypto Now
In recent years, pro-democracy politicians in Hong Kong have been prohibited from participating in politics, jailed, and even harassed while many publishers have been jailed and newspapers entirely shut down. Nonetheless, Hong Kong’s legal infrastructure makes it highly attractive for foreign direct investment (FDI), a fact that may explain why China has been quite willing for Hong Kong to remain a “special administrative region.”