The cryptocurrency market received an exhilarating boost as the Hong Kong Securities and Futures Commission (SFC) made a significant announcement today. According to the regulatory ruling, licensed platforms will soon be able to cater to retail investors, expanding investment avenues for residents of Hong Kong. This new development is slated to come into effect on June 1, 2023, bringing forth exciting opportunities in the realm of cryptocurrency investment for individuals in Hong Kong.
An intriguing component of the regulatory update is the inclusion of specific criteria that tokens must meet to be eligible for trading. As per the Hong Kong government’s guidelines, tokens must qualify as relevant virtual assets with substantial market capitalization and be listed in a minimum of two acceptable indices issued by independent providers.
This requirement aims to ensure that tokens traded on licensed platforms meet certain standards and possess a level of credibility and market recognition before being made available for trading in Hong Kong.
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Here’s Why It’s Beneficial to Cardano
The recent regulatory update presents an intriguing opportunity for the Cardano token, ADA, a widely recognized digital asset. Given the specified requirements, ADA may be promptly accessible for trading by investors in Hong Kong. This development further strengthens Cardano’s position by joining the expanding roster of cryptocurrencies featured in prominent crypto indices.
The inclusion of ADA in the Bloomberg Galaxy Crypto Index (BGCI), 21Shares Bitcoin Suisse Index, Bitwise 10 Crypto Index, Nasdaq Crypto Index, and WisdomTree Crypto Index underscores its growing significance within the market. Notably, the Bitwise and WisdomTree indices specifically incorporate the Cardano token in their listings.
While the complete list of eligible tokens is still awaiting confirmation, widely popular cryptocurrencies like Bitcoin and Ethereum will probably be accessible for trading in Hong Kong. This assumption is based on the fact that these cryptocurrencies are already included in all five major crypto indices.
Furthermore, four of the five indices incorporate Litecoin (LTC) and Polkadot (DOT), while three feature Solana (SOL) and Bitcoin Cash (BCH). These findings suggest that these tokens will likely meet the criteria set by the regulatory guidelines and will be available for trading in the Hong Kong market.