Hong Kong will allow crypto ETFs for individuals

In Hong Kong, regulators have just announced new guidelines for crypto development, which include more flexible access to ETFs. The SFC (Securities and Futures Commission), aware of the market’s potential, now plans to open it to all investors: professionals, institutions and individuals.

Crypto ETF: Hong Kong to legalize the market for individuals

Taking advantage of his participation in the event Hong Kong Fintech Week 2022, SFC says it wants to bring greater flexibility to the crypto market. Through the speech of Leung Fung Yee, deputy director general of the Securities and Futures Commission, the regulators announce this regulatory plan on October 31 to make the sector more accessible. Hong Kong is specifically considering allowing crypto investments for retail investors.

In Hong Kong, regulators are looking to legalize ETFs for retail investors.

According to Leung Fung Yee, SFC will initially only allow Bitcoin and Ether futures to be traded on the Chicago Mercantile Exchange. The regulator also clarified that only companies with a “good track record of regulatory compliance” or those with a proven track record of at least three years of ETFs will be allowed to offer these products. The SFC will soon issue a circular detailing the public offering of crypto ETFs in Hong Kong.

Hong Kong in the process of dynamic development of the crypto market

Until now, the crypto sector is strictly regulated in Hong Kong. The market is only accessible to professional investors with portfolios exceeding HK$8 million. But aware of the potential of virtual assets, the country is entering the dynamic development of the market. Christopher Hui, Secretary of Financial Services and the Treasury said, “We will consult with the market to see how we can make it easier for sellers to access these new types of schemes.”

Mainland China’s ban on crypto assets and Hong Kong’s strict regulations have caused many cryptocurrency companies to relocate to more welcoming jurisdictions such as Singapore. However, with this easing policy and high level of financial literacy, the city hopes to become a major crypto hub. At this point, Sam Bankman-Fried, the founder of the FTX exchange, argues that it is completely possible and that it is not too late to start.

Indeed, for Hong Kong, open upAND F crypto for individuals is already setting the tone for more flexible and convenient regulation of virtual asset trading. A policy that regulators see as a guarantee of trust between investors and crypto companies. The trust will ensure the sustainable development of the sector.

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Avatar of Elina Samsoudine
Elina Samsoudine

I stumbled into the cryptosphere by accident and witnessed the birth of a new era, that of DeFi. It’s all about economic freedom, transparency and opportunities available to all. This is a universe that deserves to be known.

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