The Hong Kong regulators, continuing their pro-crypto stance, proclaimed their support for the crypto ETFs and reviewed their policies.
The Securities and Futures Commission of Hong Kong has recently released a circular on crypto ETFs. It claimed to have received many queries regarding crypto investment products and services. Along with them, the Hong Kong Monetary Authority has also been receiving such enquiries. The Hong Kong regulators have thus conveyed their readiness to approve spot crypto ETF applications.
The circular explained how the earlier rules only catered to professional investors for virtual-asset-related activities. As a result, Hong Kong regulators have allowed licensed virtual asset trading platforms to have retail users. Similarly, virtual asset futures ETFs can trade in public markets in Hong Kong.
Regarding its policy review for the crypto industry, it said, “The policy is updated in light of the latest market developments, where the SFC has authorized VA futures ETFs and is prepared to accept applications for the authorization of other funds with exposure to virtual assets, including virtual asset spot exchange-traded funds.”
Meanwhile, the Hong Kong regulators have also specified certain rules and standards for the firms. It includes a virtual asset-knowledge test and selling restrictions. Other criteria for these ETFs stressed on licensed crypto platforms. It also focused on an indexing approach for assessing the valuations of these funds.
Possibilities of crypto spot ETFs in Hong Kong emerged in November 2023 as well. Julia Leung, the CEO of the Hong Kong SFC, had welcomed proposals for the ETFs. With the latest circular, the move has been formally executed.
Hong Kong has deliberated on friendly actions for the crypto industry throughout 2023. Digital currency pilots in the region have also stepped up with private firms recently. Multiple events in the past may have together contributed to the recent news of the crypto spot ETFs.
Follow Millionero for more such news related to crypto!