The Securities and Futures Commission (SFC) in Hong Kong is reviewing the rules for dealing with virtual currencies, including allowing individuals to invest in ETFs.
According to
message South China Morning News regulations, introduced in 2018, restrict cryptocurrency transactions through funds or trading platforms for professional investors who need to invest at least HK $ 8 million ($ 1 million).
SFC Deputy Executive Director Julia Leung Fung-yee announced that a re-evaluation of the adopted laws will be carried out. Fung-yi, speaking at Hong Kong Financial Technology Week in 2021, said that “virtual assets are getting closer to traditional finance,” so laws need to be revised.
“Various types of investment products for virtual assets are now available to users, and conventional exchanges abroad now offer cryptocurrency ETFs,” she said.
Cryptocurrency ETFs are not yet available to Hong Kong investors, although these financial instruments can be used in other countries. Several inquiries have already been sent to the Hong Kong regulator by companies looking to provide clients with the opportunity for such investments.
The Securities and Futures Commission is working with the Central Bank of Hong Kong and the Monetary Authority to prepare an updated single document. According to Fung-yi, the principle of the same rules and risks will be applied for banks, brokers and digital platforms carrying out activities related to digital currency assets.
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