Hong Kong has announced plans to allow retail crypto trading and digital-asset exchange-traded funds in a policy statement issued by the Hong Kong’s Financial Services and Treasury Bureau.
Hong Kong has signaled it is ready to become an Asia crypto trading centre.
The Securities and Futures Commission (SFC) is set to launch a public consultation with proposed guidelines and regulatory rules for virtual assets (VA).
Hong Kong said it is open to having ETFs on VA in our market.
Hong Kong’s Financial Services and Treasury Bureau said in a statement:
We recognise VA is here to stay, given how it has attracted attention of global investors and is increasingly viewed as a conduit for financial innovations, not to mention the future opportunities that will be opened up as VA moves into the areas of Web 3.0 and the Metaverse.
Having these products launched in Hong Kong will provide the connectivity between VA players and traditional financial institutions, offering investors with well-designed products, hence promoting the overall growth of the sector in our market. That said, we will be careful and cautious about the risks to retail investors, and therefore will enhance investor education and ensure that suitable regulatory arrangements are in place.
In her speech at the at Hong Kong FinTech Week, Securities and Futures Commission Deputy Chief Executive Officer Julia Leung said that virtual assets futures ETFs will be subject to additional requirements related to its management company, investment strategy, disclosure and investor education.
In the initial phase, the underlying assets will be confined to Bitcoin futures and Ether futures traded on the Chicago Mercantile Exchange, the SFC Deputy CEO confirmed.
