Christopher Hui, Hong Kong’s Secretary for Monetary Providers and the Treasury has defended the latest proposal by the town’s Monetary Providers and the Treasury Bureau to ban retail crypto buying and selling.

In a speech delivered at StartmeupHK digital fintech summit on Thursday, Hui mentioned that the proposal was in step with the federal government’s plan to correctly police the rising crypto market.

As beforehand reported by Cointelegraph, the FSTB issued a proposal after months of session, calling for a ban on retail crypto trading and the institution of a strict regulatory regime for cryptocurrency exchanges.

As a part of the proposal set to be introduced earlier than the town’s legislature, the FSTB argued for a minimal funding threshold for crypto buying and selling at about $1 million. This provision will reportedly exclude about 93% of Hong Kong’s population from the town’s cryptocurrency market if handed by the federal government.

Nonetheless, Hui is of a special view, stating, “We’re of the view {that a} correct regulatory system might facilitate growth and on the similar time shield traders and cling to worldwide regulatory requirements.” In accordance with the Hong Kong treasury chief:

“Imposing necessary necessities to guard traders, prohibit market manipulation, and guard in opposition to cash laundering and terrorist financing, we consider the proposed regime will additional facilitate growth of the digital property business in Hong Kong, leveraging our world-class regulatory framework.”

Aside from shutting out retail crypto exercise, Hong Kong’s restrictive legal guidelines can also power exchanges out of the town regardless of the federal government’s plan to permit international firms to acquire working licenses within the metropolis.

Certainly, again in December 2020, when the FSTB was nonetheless in the midst of its consultations, a number of business stakeholders criticized the deliberate crypto rules. On the time, critics argued that these restrictive digital forex legal guidelines can be inimical to Hong Kong’s financial innovation agenda.