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Regulations regarding crypto have always been one of the factors that make people hesitant while stepping into the crypto space. According to experts, regulation of crypto is also important as it can make them transparent and help major and minor entities in using them comfortably.
However, crypto is not being recognized or regulated as expected in all parts of the world.
According to recent reports, the financial regulators in Hong Kong released new crypto-related guidelines on Friday. As per the guidelines, retail investors have been restricted from accessing Bitcoin Spot ETFs.
The flagship crypto asset is most prominent in the world and has an undeniable value and significance, despite the ups and downs seen in its price.
Therefore, if you also want to invest in the crypto king then make sure you choose the best Bitcoin exchange.
On the other hand, if you are looking to leverage trade Bitcoin up to 100x, sign-up on Bybit today. You can also use this link to claim a bonus on your first deposit.
Details About Hong Kong Restrictions and More
As per reports, the new guidelines prohibit retail investors from accessing financial products that invest directly in cryptocurrencies.
In Hong Kong, a professional investor is an individual that has a portfolio of at least HKD$8 million or approximately $1 million in US dollars.
The circular that addressed the sales restriction was released by both the Securities and Futures Commission (SFC) and Hong Kong Monetary Authority (HKMA).
These sale restrictions have been placed by the authorities on non-derivative products such as crypto spot exchange-traded funds (ETFs). It also includes overseas products that are only offered to professional investors.
The reason why authorities have restricted ETFs is that these markets are “largely unregulated” at the moment. This can present higher risks for people who want to invest in crypto but are inexperienced and lack relevant information.
The retail investors may still have access to Bitcoin Futures ETFs on exchanges that are specified by the Securities and Futures Commission (SFC). The mediators have been a six-month transition period by the SFC and HKMA to adhere to the new requirements.
What Should Crypto Investors Know?
The crypto space has achieved quite the attention of major and minor entities in all parts of the world. A majority of people perceive crypto as a way for them to be more financially independent, while others have found it to be a good solution to inflation.
As a novice investor, you should know that there are numerous crypto assets and exchanges in the market. Even though some of the prominent include the following, you can choose to invest in a digital asset as per your preference:
However, regardless of the cryptocurrency you choose to buy, it is essential that you choose only the best platforms.
Therefore, if you are new to the crypto space and want to know how to buy Bitcoin, then you can click on SwissBorg or Kraken (U.S. citizens).
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