Hong Kong Strengthens Regulation for OTC Crypto Market

Hong Kong's Focus on OTC Crypto Market Regulation

Hong Kong is taking steps to regulate over-the-counter (OTC) cryptocurrency trading, as per local sources. Joseph Chan Ho-lim, the Under Secretary for Financial Services and the Treasury, has stated that the government aims to address the risks associated with virtual assets, particularly with the increasing interest of mainland investors who are using the city as a gateway for crypto investments.

Strengthening Regulation for Crypto OTC Desks in Hong Kong

Hong Kong is in the process of fortifying its regulatory framework for over-the-counter (OTC) cryptocurrency operations. The decision to do so has been prompted by the growing number of Chinese mainland investors who are utilizing Hong Kong as a conduit for their investments.

Joseph Chan Ho-lim, the Under Secretary for Financial Services and the Treasury, has expressed that these measures will help mitigate the potential risks associated with virtual assets, while also ensuring transparency for users who invest in these assets.

Chinese Investors and the Hong Kong Market

Earlier reports have indicated that Chinese investors have been turning to cryptocurrency assets to escape the underperforming mainland national stock market. To bypass the ban on crypto asset trading imposed by the mainland in 2021, these investors have been using Hong Kong-based platforms in conjunction with their $50,000 foreign currency quota.

It remains unclear whether the new regulations for OTC markets in Hong Kong are already finalized or still a work in progress, as local sources have not provided specific details.

Hong Kong's Stance on Cryptocurrency

In contrast to mainland China, Hong Kong has maintained an open attitude towards cryptocurrencies. The Hong Kong Securities and Futures Commission (SFC) has recently published regulations governing the future issuance of spot Bitcoin exchange-traded funds (ETFs) in the country. The SFC recognizes the popularity of virtual assets in the city and acknowledges the high demand for instruments that leverage these assets.

What are your thoughts on Hong Kong's decision to regulate crypto OTC markets? Share your opinions in the comments section below.

Frequently Asked Questions

How does a gold IRA generate interest?

It all depends on how big your investment is. If you have $100,000, then yes. If you have less than $100,000, then no.

How much money you place in an IRA will determine how it earns interest.

If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.

You will likely earn more interest there, but you'll also be exposed to riskier investments. If the stock market crashes, you don't want all your money to be lost.

However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. At least until the market recovers.

Which is better: sterling silver or 14k-gold?

Both gold and silver make strong metals. Sterling silver is more affordable than sterling silver which has only 24% pure silver.

Sterling silver is also called fine silver. It is made from a combination silver and other metals, such as zinc and copper.

The strength of gold is generally very high. It can only be broken apart by extreme pressure. If you dropped an object onto a piece or gold, it would break into thousands instead of two halves.

On the other hand, silver is not nearly as strong as gold. If you dropped an object onto a sheet silver, it would bend and fold with no damage.

Silver is often used to make jewelry and coins. Its value fluctuates based on demand and supply.

Can I place gold in my IRA account?

Yes! Gold can be added to your retirement plan. Because it doesn't lose any value over time, gold is a great investment. It protects against inflation. It doesn't come with taxes.

Before you invest in gold, make sure to understand its differences from other investments. You can't purchase shares in gold companies, unlike stocks and bonds. Nor can you sell them.

Instead, convert your gold to money. This means that you'll have to get rid of it. It is not possible to keep it.

This makes gold different than other investments. As with other investments you can always make a profit and sell them later. With gold, this isn't true.

The worst part is that you cannot use your gold to secure loans. You may have to part with some of your gold if you take out mortgages.

What does this translate to? Your gold can't be kept forever. You will have the need to make it cash someday.

However, there is no need to panic about it. You only need to open an IRA account. Then you can invest your money in gold.

Is it a good idea to have an IRA that holds gold and silver?

If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. There are also many other options. If you have any questions regarding these types of investments, please feel free to contact us anytime. We are always happy to assist!

Are precious metal IRAs a wise investment?

The answer depends on how much you are willing to risk an IRA account losing value. They make sense if you have $10,000 in cash as long as you don't expect them to grow very quickly. These might not be the best options if you're looking to invest in assets that have the potential to rise in value (gold) and plan to save for retirement for many decades. These fees can reduce any gains.

Is it a good idea to open a Precious Metal IRA

The answer depends on whether you have an investment goal and how much risk tolerance you are willing to take.

Register now if you want to save money for retirement.

It is likely that precious metals will appreciate over the long-term. They also offer diversification benefits.

The prices of silver and gold tend to be linked. This makes them better choices when you want to invest in both assets.

If you're not planning on using your money for retirement or don't want to take any risks, you probably shouldn't invest in precious metal IRAs.


  • The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
  • Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
  • SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
  • Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)

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How To

Things to Remember about the Best Precious Metals Ira of 2022

Precious Metals Ira, one of the most preferred investment options among investors, is one. This article will provide information on how to understand the appeal of precious metals ira and make sound investment decisions.

The key attraction of these assets lies in their long-term growth potential. If we look at historical data, gold prices show incredible returns. Over the past 200 years, gold has increased from $20 per ounce to almost $1900 per ounce. The S&P 500 Index grew only by about 50%.

Gold is also considered a haven during times of economic uncertainty. When the stock markets is down, people tend not to hold onto their stocks but rather move into the safety and security of gold. As an inflation hedge, gold is also thought to be a good investment. Many economists believe that inflation will continue to exist. Therefore, they see owning physical gold as a way to protect your savings from future price increases.

Before you buy any precious metal, such as silver, gold, palladium or platinum, there are some things you should consider. First, determine whether you are interested in investing in bullion bar coins or coins. Bullion bars are typically purchased in large quantities, like 100 ounces, and kept away until they are needed. Bullion bars are often replaced by coins, which can be used to buy smaller amounts of bullion.

The second is to think about where you intend to store precious metals. Some countries are more safe than others. If you are in the US, it might be a good idea to store your precious metals abroad. However, if you plan on keeping them in Switzerland you may want to think about why.

Finally, you need to decide whether you want precious metals investments directly or through “precious Metals Exchange-Traded Funds” (ETFs). ETFs are financial instruments which track the performance and price movements of different commodities like gold. These are a way to have exposure to precious metals but not necessarily own them.


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