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Hong Kong Implements New Regulatory Framework for Crypto Trading

Hong Kong's financial regulator has implemented a new regulatory framework for cryptocurrency, which prioritizes investor protection over cost-saving for exchanges. Retail investors in the city will be allowed to trade specific "large-cap tokens" on licensed exchanges, provided that safeguards such as knowledge tests, risk profiles, and exposure limits are in place. The Securities and Futures Commission will also begin providing licenses to crypto exchanges. However, the industry remains cautious about the regulatory changes due to concerns about the costs and complexities of adhering to the rules. Bobby Lee, a crypto pioneer, warned that Hong Kong's ambition to become a crypto hub may not be sustainable, as digital asset trading remains banned in mainland China.

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