(Bloomberg) -- Hong Kong said retail investors can trade crypto under its new rulebook for the sector, stepping up a drive to develop a digital-asset hub even as the industry and regulators clash elsewhere in Asia.

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The city’s Securities and Futures Commission on Tuesday detailed the conclusions of a consultation on retail participation. The agency stuck with a plan to let individual investors buy and sell bigger tokens like Bitcoin and Ether starting June 1 when a new licensing regime for virtual-asset platforms begins.

The framework seeks to woo crypto firms while safeguarding investors and is part of Hong Kong’s effort to restore its status as a cutting-edge financial center. But any embrace of digital assets is controversial after a market rout in 2022 that sparked a spate of bankruptcies like the collapse of FTX.

“It’s not a full open-arm stance as they want to maintain financial stability while opting for financial innovation,” said Cici Lu, founder of Venn Link Partners, a blockchain adviser. “That’s a pragmatic approach. People shouldn’t expect an open buffet for all while applying for a license in Hong Kong.”

Larger Tokens

Individual investors can trade larger coins on exchanges licensed by the SFC under Hong Kong’s new approach. Safeguards include knowledge tests, appropriate risk profiling and reasonable limits on exposure.

The coins should be included in at least two acceptable, investible indexes from independent providers, one with experience in the traditional financial sector.

The SFC said in its conclusions that licensed platforms should “comply with a range of robust investor protection measures covering onboarding, governance, disclosure and token due diligence and admission, before providing trading services to retail investors.”