Hong Kong is making headlines with its crypto-friendly moves, and DOGE has released a statement for MATIC and these coins. cryptocoin.comWe have compiled the details of the statement published by SFC for you.
Statement concerning DOGE, MATIC and these altcoins
For the past few days, Hong Kong has been making headlines with its crypto-friendly moves. The special administrative district is adopting cryptocurrencies by allowing retail investments. Earlier this week, the Hong Kong Securities and Futures Commission [SFC] released a statement highlighting the possibility of retail investors buying and selling large-cap assets like Bitcoin and Ethereum.
Individual investors will be able to trade popular cryptocurrencies on agency-licensed exchanges. However, these virtual asset trading firms should consider Hong Kong’s investor protection. Wu Blockchain tweeted about this issue.
According to Hong Kong SFC, the tokens that compliant exchanges allow retail investors to purchase must be included in the two indexes.
The following may be included
Bitcoin
Ethereum
Litecoin
Bitcoin Cash
Polkadot
Solana
Cardano
Avalanche
Polygon
Chainlink
From @tier10k pic.twitter.com/0cLhoRVh8T— Wu Blockchain (@WuBlockchain) February 24, 2023
According to Hong Kong SFC’s plan, only large-volume virtual assets that are part of at least two recognized indices will be eligible for trading. Not all of these assets will be hosted by SFC. For example, Bitcoin Cash, Stellar Lumens, Ethereum Classic, Litecoin, Polkadot and EOS have very low liquidity.
Additionally, the market depth of these assets is also poorly ranked. Market depth is a market’s ability to resist large market orders without significantly affecting the price of the asset. All these factors have led many to believe that the Hong Kong watcher may not include these ‘speculative tokens’.
What assets can the Hong Kong market support?
The Hong Kong market can support assets such as Dogecoin, Bitcoin, Ethereum, XRP and others. This is because they guarantee great liquidity. But Dogecoin, XRP, MATIC and LINK are not part of the two indices that are a big requirement.
Unlike Bitcoin, Dogecoin is not part of the required number of indices. However, the chances of the meme coin are still high. Detailing the same issue, Kaiko said:
“Some of the tokens that can be considered under SFC’s new rules are not of the highest caliber, both in terms of fundamentals and liquidity. This is actually an issue with indices in crypto, but the SFC needs to properly account for liquidity as these may be excluding some tokens with better fundamentals and liquidity simply because they are not included in the two indices.”
With the strengthening of Hong Kong’s crypto money steps with each passing day, the Central Bank of China’s interest rate hikes last week brought a rise to cryptocurrencies like many stocks. In addition to this, the rises in VET and NEO also drew attention, apart from CFX, which saw 500% weekly increases.
