Introduction:
While the world anticipates the United States’ impending Bitcoin ETF, Hong Kong is making a similar move. This special administrative region is gearing up to pave the way for spot crypto ETFs. In a joint statement, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announced their willingness to accept such applications.
Policy Revision for Crypto ETFs:
The SFC and HKMA express their intention to review their policies, with the HKMA, the region’s central bank, actively involved. The SFC states its readiness to accept applications for the authorization of other funds, specifically virtual asset spot exchange-traded funds (VA spot ETFs).
Following the US Path:
Hong Kong aligns itself with the United States, where futures ETFs have been approved for two years, but spot ETFs are still pending approval. The SFC outlines requirements for funds to “directly invest in the same VA tokens traded on SFC-licensed platforms for virtual asset trading accessible to the public in Hong Kong.”
Continuation of Crypto-Friendly Policies:
Hong Kong continues its crypto-friendly policies, in contrast to mainland China, which has imposed a ban on crypto trading and mining. There are reports of increasing computational power returning to the Asian country.
Hong Kong’s Cryptocurrency-friendly Stance:
In October 2022, Hong Kong officials introduced favorable crypto policies, even encouraging banks to welcome customers involved in crypto-related activities. This move positions Hong Kong as a cryptocurrency-friendly hub amid evolving global regulatory landscapes.
Julia