Today, the Hong Kong Securities and Futures Commission, or SFC (aka ‘HK SEC’), demonstrated how serious they are about allowing individual investors to trade cryptocurrencies. As most would know, Hong Kong has been taking significant strides towards being a crypto-focused monetary center lately – such as approving ETFs for Bitcoin & Ether. This move enables them to become even more of an international powerhouse in the digital currency market!
Recent steps taken regarding cryptocurrencies have been largely geared toward corporate companies. However, it appears that an avenue for individual investors to make crypto money transactions is about to be opened up. The SFC has released a “public consultation text” with a deadline of March 31st for comments. This could lead to a new era of opportunities and financial gains available exclusively through cryptocurrencies!
One of the Hong Kong SFC’s Criteria is High Market Capitalisation
As for what SFC desires from investors? Two significant criteria were initiated to set the groundwork for a secure atmosphere of cryptocurrency trading. Primarily, there is an emphasis on any digital currency’s high market worth. In fact, Bitcoin and Ether ETFs have recently been authorized in Hong Kong – signifying that these two leading cryptocurrencies are viewed as dependable assets.
But what about other cryptocurrencies? With their vast market capitalizations, which one will SFC select and trade for the general public?
The other Criterion Is to Be Accepted by the Two Indexes
To meet the criteria set by the SFC, a virtual asset must possess substantial market value and be included in two acceptable indices created and maintained independently by at least two index providers. This shows that trustworthiness is just as paramount when considering eligibility for the list of safe cryptocurrencies.
Wondering what types of cryptocurrencies are accepted in the world of traditional finance? Let us introduce you to some trusted indices: Nasdaq, Galaxy, 21Shares, Bitwise, and Wisdomtree. Each has a reputation for reliability that is second to none.
Here Are a few of the Cryptocurrencies that Can be Accepted by the SFC
Not only are Bitcoin and Ethereum present in all indices, but many other cryptocurrencies have been included as well. To give an example of this wide range of digital assets, the Galaxy index includes Litecoin, Bitcoin Cash, and EOS alongside these two leading currencies.
Nasdaq, a leading index in the crypto market, offers an extensive list of coins like Bitcoin, Ethereum, Litecoin, Cardano, and Solana. The Bitwise index has some newer cryptos, such as Avalanche and Polygon, that have recently been added to their roster. 21Shares, on the other hand, is more restricted; they only provide Bitcoin, Ethereum Polkadot, BNB, and Solana for now.
As a result, the SFC will consider various levels of cryptocurrency investment. To make an informed decision by March 31, feedback from the public is encouraged and required. Following this process, cryptocurrencies can be traded on government-controlled exchanges for maximum security measures.
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