Cryptocurrency prices rose on Tuesday after Hong Kong’s securities regulator announced it would allow retail trading of certain crypto assets from June 1.
Bitcoin It rose 1.7% to $27,293.64, according to Coin Metrics. The largest cryptocurrency has been trading in a narrow range throughout May, struggling to break well above $30,000 but holding above $25,000. ether It rose nearly 2% to $1,851.91.
Monday midnight, Hong Kong Securities and Futures Commission Said Starting next month, retail investors will be able to trade certain crypto assets on registered trading platforms.The move has been widely anticipated, and today’s announcement End of public comment period The company announced proposed regulatory requirements for retail trading of cryptocurrencies in February.
The new guidelines are part of a broader effort to make Hong Kong a global cryptocurrency hub. Its ambitions are in stark contrast to China, which banned cryptocurrency trading in 2021, and the United States, whose regulatory stance on cryptocurrencies has become hostile since the fall of FTX.
“This news does not mean that retail purchasing power will enter the market in early June … However, there may be some increase in transaction volume in June,” said The Economist “Crypto is Macro”. said Noel Acheson, author of Now’ newsletter.
The Hong Kong Securities and Futures Commission has already licensed two digital asset platforms, OSL and Hash Blockchain, and some are likely already actively trading offshore, Acheson said.
Oppenheimer analyst Owen Lau said Hong Kong is “pretty aggressive” in its attempt to become a cryptocurrency hub.
“It will continue to attract the attention of the local community, and more companies will set up offices in Hong Kong,” he said. “The exact impact is difficult to measure, but it will have a long-term impact on capital flows and the movement of talent.”
Both cryptos have struggled to make meaningful moves in either direction in May. The market is lacking a major detonator and investors are watching the debt ceiling negotiations closely, but trading has been relatively quiet, with Bitcoin returning to behave like a risky asset.