Core Viewpoint - Hong Kong plans to relax regulations to encourage cryptocurrency trading activities, allowing licensed platforms to connect local entities to their global order books, which aims to align cryptocurrency trading with traditional asset regulations [1] Group 1: Regulatory Changes - The Hong Kong Securities and Futures Commission (SFC) will issue a regulatory circular later today (November 3) regarding the new measures [1] - The current model restricts trading to local orders, and the new approach will break this closed model [1] - The SFC has previously taken a strong stance on regulation but is willing to ease restrictions once investor protection is ensured [1] Group 2: Market Implications - The potential changes could attract major cryptocurrency exchanges like Binance and Coinbase to establish operations in Hong Kong [1] - Licensed cryptocurrency brokers may gain access to global liquidity pools, enhancing trading opportunities [1] - The SFC has not provided a specific timeline for when these changes will be implemented [1]