After enticing crypto leaders to establish firms and exchanges, Hong Kong to allow retail investors trade Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, according to sources familiar with the matter.

Amid the clampdown against crypto in several leading economies, Hong Kong leveraging this opportunity to increase its dominance as the city’s crypto hub initiative attracts global crypto exchanges and firms.

Hong Kong Push Up Crypto Hub Plan By Enabling Crypto Retail Trading

Hong Kong Securities and Futures Commission (SFC) is set to announce retail investors’ participation in crypto at a press conference on May 23. The authorities are looking to let retail investors trade only top cryptocurrencies as per new rules of the agency.

Hong Kong takes a more progressive approach by introducing regulations and licenses for the crypto industry while China, the U.S., and other countries restrict crypto. The city plans to introduce a licensing regime for virtual asset firms in May, with retail access slated for June 1.

In a February consultation paper, a plan was introduced to let retail investors trade top virtual assets on exchanges licensed by the SFC. Safeguards such as knowledge tests, risk profiles, and reasonable limits on exposure are in place to ensure investor protection. Furthermore, investors are restricted from trading crypto assets that are not included in at least two investible indexes from reputable providers, with one of which having experience in the traditional finance industry.