Global Digital Finance Questions Hong Kong Proposed Crypto Rule

A cryptocurrency advocacy group, Global Digital Finance has said the Hong Kong newly proposed Crypto rule will cause retail investors to associate with unlicensed platforms.

Global Digital Finance made this known and explained that the proposed rule will increase financial risk for the retail investors.

The Hong Kong’s Proposed Crypto Rule

A report given by Coindictate stated that, “Hong Kong in a report distributed on Reuters noted that it will manage all digital currency trades working in the nation. 

The new proposition would require all trades inside the nation’s Security and Futures Commission (SFC) administrative domain to get a permit under its anti-money laundering (AML) legislation.”

What Does Global Digital Finance Think About The Rule?

Global Digital Finance (GDF), an industry body controlling cryptocurrency firms including OKCoin, BitMEX, and Coinbase gave its take on this proposed rule.

It said, whenever actualized, the new system would urge retail financial investors to search out unlicensed and peer-to-peer platforms.

Further stating its point, it said the risk for financial investors will enter a great high. Seeking alternative trade platforms will predispose them to higher risk.

Malcom Wright, chairman of GDF’s advisory council, gave his view on this rule.

He believes the step is strange and it is different from what other advanced countries like Singapore, the UK, and the US do.

He was quoted saying, “Restricting cryptocurrency trading to professional investors only is different to what we have seen in other jurisdictions such as Singapore, the UK, and the US, where retail investors can buy and sell virtual assets.”

The move will only lead to more financial crimes and the government can look for a better alternative, said Wright.