Crypto Hong Kong regulators may allow ETFs
Crypto Hong Kong regulations are likely to see new laws for virtual asset investment. The Securities and Futures Commission (SFC) intends to introduce a consultation paper with the suggested regulations for cryptocurrencies. The regulatory body is also planning to launch cryptocurrency exchange-traded funds (ETFs).
This step will likely give easy access to institutional and retail investors in the country. At the initial stage, only BTC and ETH will be available for futures trading on the Chicago Mercantile Exchange.
On 31 October 2022, the government released a policy statement about crypto Hong Kong regulations. It shared the government’s vision about the future of virtual assets in the country. Also, it discussed the regulatory approach and the anti-money laundering laws. Along with that, it also discussed cryptocurrency ETF.
The Financial Services and the Treasury Bureau believe that using cryptocurrencies as a medium of investment by individuals and institutions is growing. That’s why they are introducing ETFs to facilitate investors.
The bureau expects that launching such products will engage digital asset investors with financial institutions. This will allow them to avail of the products through a secure channel. Also, it will play a significant part in promoting digital assets in the market.
Crypto Hong Kong policies for ETF service providers
SFC has also mentioned details about service providers who can operate in the market. According to SFC, only the firms with a “good track record of regulatory compliance” and dealing with ETFs for a minimum of three years will be given the approval.
Moreover, these finance management firms would be required to maintain active management strategies. The strategy should be flexible for portfolio management and disruptive market events. All in all, Hong Kong has so far been eminent in drafting policies that aim to promote cryptocurrency adoption.
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