Financial regulators in Hong Kong are considering a ban on retail traders from participating in the cryptocurrency market, according to local sources.

According to a Reuters report published May 21, the Financial Services Authority and the Treasury Department of Hong Kong have announced the results of consultations on a ban on personal-level cryptocurrency trading, starting from November 2020.

As part of its conclusion, Hong Kong’s FSTB called for a comprehensive adoption mechanism for crypto exchanges to restrict trading to ineligible investors. Under Hong Kong law, only individuals with a portfolio worth HK$8 million (about $1 million) are eligible as professional investors.

If passed, the proposed licensing regime would also replace the current participation licensing model for crypto exchanges in the Hong Kong territory.

By restricting crypto trading in Hong Kong to those with a portfolio worth at least $1 million, the FSTB has the potential to exclude up to 93% of the city’s population from access to the market. this.

Several stakeholders in Hong Kong’s vibrant cryptocurrency industry have expressed their displeasure with the plan, arguing that the move is inconsistent with the country’s goal of encouraging financial innovation. goverment.

In another related development, at the 51st session of China’s Financial Stability and Development Commission chaired by Vice Premier Liu He, lawmakers took a tougher stance regarding to cryptocurrency mining and trading. The Commission is listing a number of risks to watch out for, including: early detection and prevention of credit risk; strengthen supervision of financial activities of enterprises; regulate Bitcoin mining and trading activities; and limit personal credit risk.