Hong Kong regulator reassesses retail crypto ETF laws
The Securities and Futures Commission, or SFC, in Hong Kong is reviewing regulations for virtual currency transactions, including whether individuals can invest in exchange-traded funds or ETFs.
According to a report published on Wednesday by South China Morning News, the 2018 regulations restricted cryptocurrency transactions through funds or trading platforms to professional investors with at least HK $ 8 million ($ 1,028,624.00 ). invest.
SFC Deputy General Manager Julia Leung Fung-yee said the reassessment will be carried out “to see if it is still fit for purpose and if changes are needed.” Fung-yee, speaking at the 2021 Hong Kong Financial Technology Week conference, said that “virtual assets are moving closer to traditional finance,” hence the need to revise the laws.
“Following, [and] different types of virtual asset investment products are available and conventional exchanges abroad now offer cryptocurrency ETFs. “
Crypto ETFs are not available to Hong Kong-based investors, although these financial instruments can be purchased in other countries. In the United States, at least 12 applications for these funds have been submitted to the SEC by companies wanting to offer speculators a chance to get into cryptocurrencies. Several inquiries have been submitted to the Hong Kong regulator by companies wishing to make such investments.
Since the SFC established these regulations three years ago, digital assets have grown in popularity immensely, with Bitcoin (BTC) increasing six-fold to $ 62,238 this week. The rally was driven by big investors and funds rushing into cryptocurrencies believing they would soon be used for payments, while retail investors joined in the fun for quick profits.
The SFC is working with the de facto central bank, the Hong Kong Monetary Authority, or HKMA, to produce a unified circular after the assessment. According to Fung-yee, the SFC and HKMA will apply the principle of “same business, same risks and same rules” for banks, brokers and digital platforms conducting business related to digital currency assets.