- Hong Kong Securities and Futures Commission released a general framework for assets to be included in retail transactions on Tuesday.
- In addition to Bitcoin and Ethereum, several Ethereum alternatives like Cardano, Solana, Avalanche, Polygon and Chainlink ranked on the list.
- The introduction of these tokens to retail traders in Hong Kong could intensify competition among Ethereum alternatives.
Hong Kong’s independent statutory body charged with the regulation of the securities and futures market shared a general framework for assets to be included in retail transactions, earlier today.
Several Ethereum alternatives fit the criteria defined by the Hong Kong Securities and Futures Commission (SFC), intensifying competition among these assets.
Also read: Shiba Inu’s Shibarium heats up competition among Ethereum-based blockchains Arbitrum and Optimism
Ethereum alternatives find a place among assets open for retail trade in Hong Kong
The Hong Kong SFC issued conclusions on the consultation papers proposing regulatory requirements for virtual asset trading platforms, earlier today. Non-security tokens with 12 months of no bad record are open for retail trade in Hong Kong. As of now, stablecoins are not allowed.
Analysts that evaluated the consultation conclusion released by the Hong Kong SFC explained that the general framework is not much different from the previous one, and requires that the asset be included in the two cryptocurrency indexes as a minimum for retail transactions.
Based on the above criteria, Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Polkadot (DOT), Solana (SOL), Cardano (ADA), Avalanche (AVAX), Polygon (MATIC) and Chainlink (LINK) are most likely to be directly included in retail transactions.
Assets likely to be included for retail transactions
On May 25, the SFC will gazette guidelines for entities engaged in virtual asset trade and apply for relevant licenses. The regulator will accept applications for virtual asset trading platforms starting June 1, 2023.
Competition among Ethereum alternatives to intensify
Besides large market capitalization assets Bitcoin and Ethereum, several alternatives such as ADA, SOL, AVAX, DOT, MATIC and LINK qualified and are likely to be open for retail trade in Hong Kong.
This can be equated with an influx of capital, new traders and on-chain activity to these blockchain networks. Ethereum alternatives are likely to compete for a higher market share, user acquisition and offering traders opportunities with lower transaction costs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.