The Regulators of Hong Kong have just presented a proposal to the country’s Financial Services and the Treasury Bureau (FSTB) aimed at banning Bitcoin retain trading, according to Reuters.
If the proposal is eventually approved by the authorities, cryptocurrency trading will only be allowed to millionaires.
We should remember that it has recently been rumored Hong Kong was considering a prohibition on crypto trading, so the current proposal should be considered as good news, as it does not involve a complete ban on the activity.
The proposal is the result of the public consultation started by the FSTB in November last year. According to the conclusions of the consultation, a comprehensive regulation should be applied to cryptocurrency trading platforms, while only qualified investors (investors with portfolios worth at least $1 million) will be able to trade crypto assets.
If the proposal receives approval, only 7% of the city’s population would be eligible to trade cryptocurrencies, as that is the percentage of investors whose portfolios meet the $1 million requirement.