Showing posts with label Hongkong. Show all posts
Showing posts with label Hongkong. Show all posts

The regulations governing retail crypto ETFs in Hong Kong have been re-examined.

Many petitions for the Hong Kong Securities and Futures Commission to allow crypto ETFs for trading have been submitted. Hong Kong's Securities and Futures Commission (SFC) is investigating legislation governing virtual currency transactions, including whether people can engage in exchange-traded funds (ETFs).

According to a report published on Wednesday by the South China Morning News, the 2018 legislation restricted cryptocurrency transactions via funds or trading platforms to professional investors with a minimum investment of HK$8 million ($1,028,624.00).

The re-evaluation will be done "to assess if it is still suitable for purpose and whether revisions are necessary," according to SFC deputy chief executive Julia Leung Fung-yee. "Virtual assets are moving nearer traditional finance," Fung-yee remarked at the 2021 Hong Kong Financial Technology Week conference, indicating the need to revisit the rules.

“There are now more [and] diverse forms of virtual asset investment instruments accessible, and traditional exchanges in other countries are now offering cryptocurrency ETFs.”

Despite the fact that these financial products may be purchased from other nations, Hong Kong-based investors are unable to purchase crypto ETFs. At least 12 applications for these funds have been filed with the Securities and Exchange Commission (SEC) in the United States, with the goal of allowing speculators to invest in cryptocurrencies. Companies seeking to supply such investments have made many enquiries to the Hong Kong regulator.

Digital assets have surged significantly in popularity since the SFC adopted these laws three years ago, with Bitcoin (BTC) surging six-fold to $62,238 this week. The boom was fueled by large investors and funds pouring money into cryptocurrencies in the hopes of seeing them utilized in payments shortly, while individual investors jumped in for a fast profit.

After the review, the SFC is working with the de facto central bank, the Hong Kong Monetary Authority, or HKMA, to issue a single circular. The SFC and the HKMA will apply the principle of "same business, same risks, same rules" to banks, brokers, and digital platforms engaging in digital currency asset-related operations, according to Fung-yee.

Share:

Hot Topic

Elon Musk was told by Jack Dorsey that Twitter should include a "Like Signal" protocol.

Elon Musk wonders over possible variations of the social network in a string of text messages. Former CEO and co-founder of the birdsite Jac...

counter, at the bottom of the page, in a table, div or under a menu.