The deputy chair of the Hong Kong Securities and Futures Commission (SFC) said that when investors gain access to cryptocurrency ETFs, they will face additional restrictions.
During the Hong Kong Fintech Week conference, SFC Deputy Chair Julia Leung said that for several months the Commission has been receiving requests from local companies to launch investment funds (ETFs) for cryptocurrencies. The demand for this exchange-traded instrument is growing among private banks and qualified investors.
When users gain access to cryptocurrency ETFs, Leung said they should be aware that they will face additional restrictions compared to traditional ETF investors. However, she did not say when regulators will approve ETFs for cryptocurrencies and how this market will be regulated.
The SFC vice chair said the SFC is currently reviewing its cryptocurrency regulation regime to make sure it remains “fit for purpose.” Under this regime, cryptocurrency service providers must be licensed to operate in Hong Kong and can only offer services to professional investors.
These investors include individuals with an investment portfolio of more than HK $ 8 million ($ 1 million) or companies with assets worth more than $ 5 million. Fund managers regulated by the SFC can invest up to 10% of their assets in cryptocurrency and must apply to receive special license if they want to invest more.
Recall that in September, SFC Deputy CEO Liang Fengyi proposed to tighten regulation of cryptocurrency trading in Hong Kong. In addition, it recently became known that the Hong Kong Monetary Authority (HKMA), together with the People’s Bank of China, are testing government digital currencies.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
