Hong Kong Securities and Futures Commission (SFC) is evaluating whether or not it should allow retail crypto index funds. The government body has significantly loosened its investment policy on digital assets, which could help the country to plug the gap left by Fidelity’s decision last year.
Hong Kong’s Securities and Futures Commission (SFC) has requested that the government re-evaluate its current regulations on retail cryptocurrency exchange traded funds, otherwise known as ETFs. The regulator believes that such a move would allow for better compliance with new trading laws offered by Hong Kong Stock Exchange.Hong Kong regulators have been investigating crypto ETFs since late last year to make sure they are not offering an unregulated financial instrument. Hong Kong securities regulator said it will re-evaluate its position following a campaign by investors and the public to offer retail cryptocurrency funds in accordance with regulations after the government received 1,300 comments from individuals and organizations during a six-week consultation period until October 4th.,The “upcoming crypto regulations” is a topic that has been discussed for quite some time. The Hong Kong regulator has re-evaluated the laws on retail crypto ETFs and has decided to not take any action at this time.
Hong Kong’s Securities and Futures Commission (SFC) is investigating legislation governing virtual currency transactions, including whether people may engage in exchange-traded funds (ETFs).
According to a report published on November 3 by the South China Morning News, the 2018 legislation restricted cryptocurrency transactions through funds or trading platforms to professional investors with a minimum investment of HK$8 million.
The re-evaluation will be done “to assess whether it is still suitable for purpose and if revisions are necessary,” according to SFC deputy chief executive Julia Leung Fung-yee. “Virtual assets are moving closer conventional finance,” Fung-yee remarked at the 2021 Hong Kong Financial Technology Week conference, citing the need to examine the rules.
“There are more [and] more 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 exploded in popularity since the SFC adopted these laws three years ago, with Bitcoin (BTC) increasing six-fold to $62,238 this week. The boom was fueled by large investors and institutions 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 concept of “same business, same risks, and same standards” to banks, brokers, and digital platforms engaging in digital currency asset-related operations, according to Fung-yee.
The Hong Kong regulator re-evaluates retail crypto ETFs laws. The UK government is currently considering whether to legalize icos. Reference: are icos legal in the uk.
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