🔸Hong Kong is taking a big step to expand its cryptocurrency market by allowing professional investors to trade cryptocurrency derivatives.
This is an important move because the cryptocurrency derivatives market is much larger than the direct buy and sell (spot) market. In fact, in the first quarter of the year, the volume of cryptocurrency derivatives was $21 trillion, while the spot trading volume was $4.6 trillion.
The crypto industry had long been calling for these regulations. Additionally, the Hong Kong government also recently approved a law to regulate stablecoins, which are cryptocurrencies designed to maintain a stable value.
Hong Kong is opening its doors to a larger and more complex crypto market, starting with professional investors and stablecoins.
