• Hong Kong’s Securities and Futures Commission (SFC) has taken a new approach to the crypto industry which could bring capital to the market.
• Data from Kaiko suggests that Asian exchanges have benefited most from the 2021 bull run.
• The SFC’s proposal allows trading in “largest cap virtual assets” included in at least two approved indices.
Hong Kong Takes a Crypto-Friendly Approach
Hong Kong’s Securities and Futures Commission (SFC) is taking a new approach to the crypto industry with an eye towards regulating it and bringing more capital into the ecosystem. On Monday, Hong Kong made clear its intentions to open the door to crypto trading in the Asian region with this new stance appearing much different than enforcement actions taken by the U.S. Securities and Exchange Commission (SEC).
Asian Exchanges Benefit Most From Bull Run
Digital asset market data provider Kaiko weighed in on the matter, suggesting that Asia appears to be positioning itself at the forefront of the next digital asset revolution by welcoming crypto business. According to Kaiko’s research, monthly trading volume since 2020 shows that Asian exchanges have benefited most from 2021’s bull run – despite China outlawing digital assets at year-end 2021.
SFC Proposal for Eligible Crypto Assets
The SFC’s proposal will allow trading in “largest cap virtual assets” included in at least two approved indices. This influx of new capital into Hong Kong and Asia could mean economic growth for both regions as well as Asian exchanges; with perpetual futures markets reacting positively to this announcement – anticipating renewed flows from Asia toward listed tokens like Bitcoin Cash, Litecoin, and Polkadot.
Impact on Global Markets
The impact of relaxing regulations on cryptocurrency trading within these markets should not be underestimated either; allowing global investors access to previously closed off markets – potentially driving prices up across all digital assets while also providing significant liquidity benefits too.
In conclusion, this move by SFC stands to benefit both individuals in Hong Kong and Asia looking for regulated investment options as well as global investors seeking access to previously inaccessible markets – potentially driving prices up across all digital assets while also providing significant liquidity benefits too.