Ekta Mourya
FXStreet
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.
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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.
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.
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FLOKI, one of the largest meme coins in the crypto ecosystem, hit a key milestone early on Saturday. The token’s total value locked hit $54.4 million and catalyzed a price rally in the meme coin. FLOKI price climbed over the weekend, hitting $0.00003132 on Binance.
Chainlink, the token of a decentralized blockchain oracle network, is likely to get a boost from the blockchain’s adoption by financial institutions in Hong Kong. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) technology is being used for value exchange in Hong Kong’s Central Bank Digital Currency (CBDC) trials.
Ethereum witnessed a spike in the holdings of large wallet investors in the network. Supply of the altcoin held by large addresses, as a percentage of the total supply has climbed consistently between May and November 2023.
Cardano, one of the largest competitors of the Ethereum network and a Layer 1 blockchain network, suffered a pullback after posting 12% weekly gains. There are two bullish catalysts that are likely to fuel a recovery in ADA price, first is the Cardano Summit where protocols on the ADA chain compete, and second is partner chains.
Bitcoin (BTC) price, on the daily time frame, showcases not one but multiple sell signals. To add to its woes, on-chain metrics are also showing profit-taking en masse. While the rally prompted by the potential ETF approval has propelled BTC so far, the lack thereof could also knock the pioneer crypto lower.
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