In today's digital age, crypto asset investment has become a hot area pursued by many investors. However, the risks and challenges that come with it are also becoming increasingly prominent, especially in terms of protecting investor rights. Recently, the Hong Kong government announced an updated crypto asset investor protection policy, stipulating that investors can only trade through testing. The implementation of this policy will have a profound impact on investors and the market. Let's explore it in depth.

In the crypto asset market, investor protection has always been a focus of attention. The new policy requires investors to pass the test before they can trade, which means that they need to have certain professional knowledge and skills. This move aims to enhance investors' risk awareness and reduce speculative behavior, thereby protecting their legitimate rights and interests. In this way, the government hopes to regulate the market order, prevent potential financial risks, and create a safer and more reliable investment environment for investors.

The investment risks of crypto assets are self-evident, and problems such as large market fluctuations and information asymmetry often plague investors. Therefore, the government's introduction of this new policy is undoubtedly a kind of protection and guidance for investors. Through testing, investors will no longer blindly follow the trend, but will be able to make investment decisions more rationally. This will not only help reduce investors' losses, but also improve the transparency and stability of the market. In the long run, this policy is expected to promote the healthy development of the crypto asset market and attract more long-term investors to participate.

In addition, restricting investors' transactions through testing will also help prevent illegal activities such as market manipulation and insider trading. Investors need to prove that they have sufficient investment knowledge and experience through certain key indicators, which will effectively reduce improper behavior in the market and maintain market fairness and justice. This measure can be said to be for the long-term development of the market. Although it may cause a certain degree of inconvenience to some investors, it is a necessary measure from the overall interest.

However, the specific implementation details and operating procedures of this policy need to be further clarified and improved. The government should establish a sound testing standard and evaluation system to ensure the fairness and objectivity of the test. At the same time, relevant training and guidance are also needed to help investors better understand the test content and requirements. Only with the joint efforts of the government, the market and investors can this policy really play a role and achieve the expected results.

In general, Hong Kong's updated crypto asset investor protection policy is to protect the interests of investors, regulate market order and promote the healthy development of the market. Although restricting investors' transactions through testing may bring some challenges and resistance, in the long run, this is a positive exploration and attempt. It is hoped that with the joint efforts of the government, the market and investors, the crypto asset market will become more mature and stable, creating more opportunities and benefits for investors. Let us look forward to the implementation of this policy and inject new vitality and momentum into the development of the crypto asset market.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120BtC.COM) News: The Securities and Futures Commission (SFC) of Hong Kong said in a statement that it has updated its regulatory framework and added two investor protection measures. Including trading restrictions and virtual asset knowledge tests, it aims to ensure that investors have sufficient knowledge and risk awareness when participating in crypto product transactions and minimize the risks they may face.

Hong Kong updates crypto asset investor protection policy

As the two major financial regulatory agencies in Hong Kong, the SFC and the Hong Kong Monetary Authority (HKMA) issued a press release on the 20th, saying that due to receiving many inquiries from intermediaries and retail investors, the former is interested in providing crypto asset trading services to the latter, and the latter is also willing to learn more about the content and regulations.

At the same time, in view of the rapid development of virtual assets in the current financial market, the two regulators believe that it is necessary to implement the following two additional investor protection measures for the trading of virtual asset-related investment products:

 Selling Restrictions

First, the first restriction states that certain virtual asset-related investment products that are considered more complex and less suitable for retail investors, including virtual asset exchange-traded funds (VAETFs) or exchange-traded products (VAETPs), can only be provided to professional investors.

In addition, intermediaries must also review the financial status and personal circumstances of investors and set investment limits for each retail user to ensure that their investment in virtual assets is reasonable.

The purpose of this move is to prevent general investors who are not familiar with or familiar with virtual assets from participating in too many transactions, because these high-risk products may exceed their tolerance.

 Virtual Asset Knowledge Test

Second, in addition to the above-mentioned investor classification restrictions, intermediaries need to assess the investor's understanding of virtual assets and related products before participating in virtual asset-related products or transactions; institutional professional investors and qualified corporate investors are exempt from this test.

If investors lack sufficient knowledge of virtual assets or their related products, intermediaries must provide appropriate training and education to ensure that investors understand the nature and possible risks of virtual assets.

In addition, intermediaries should also ensure that investors have sufficient net assets or financial capabilities to bear the risks and potential losses of virtual assets and related products.

The purpose of the above two measures is to ensure that investors have sufficient knowledge and risk awareness when participating in the transaction of virtual asset products and reduce their risks when trading.

Summary of other Hong Kong regulatory policies

Previously reported that although major mainstream centralized exchanges use stablecoins such as USDT or USDC as trading and settlement media, the centralized companies behind them still have the risk of "reserve opacity" and "price decoupling and collapse".

In response, the Hong Kong authorities disclosed the crypto regulatory framework as early as May, indicating that retail investors would be prohibited from buying and selling stablecoins before more stringent measures were introduced.

In addition, income-generating investment products such as pledge, lending and liquidity mining, which are seen everywhere in centralized exchanges, are not allowed to appear on Hong Kong licensed platforms to avoid potential conflicts of interest and ensure the neutrality of the platform.