In Hong Kong, regulators have just announced new guidelines for crypto development, which includes more flexible access to ETFs. The SFC (Securities and Futures Commission), aware of the potential of the market, now plans to open it to all investors: professionals, institutions and individuals.
Crypto ETF: Hong Kong will legalize the market for individuals
Taking advantage of its participation in the Hong Kong Fintech Week 2022 event, the 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 October 31 regulatory plans to make the sector more accessible. Hong Kong is notably considering allowing crypto investments to retail investors.
According to Leung Fung Yee, the SFC will initially only allow Bitcoin and Ether futures traded on the Chicago Mercantile Exchange. The regulator also clarified that only companies with a “good regulatory compliance history” or those with a proven track record of at least three years running 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
So far, 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 embarking on the dynamic development of the market. Christopher Hui, Secretary of Financial Services and Treasury said, “We will consult with the market to see how we can make it easier for retailers to access these new types of scheme.”
Mainland China’s ban on crypto assets and Hong Kong’s strict regulations have prompted many crypto companies to relocate to friendlier jurisdictions like Singapore. Nevertheless, with this easing policy and its high level of financial literacy, the city hopes to become a major crypto hub. On this point, Sam Bankman-Fried, founder of the FTX exchange, argues that it is entirely possible and that it is not too late to get started.
Indeed, for Hong Kong, open theAND F crypto to individuals is already setting the tone for more flexible and appropriate regulation of virtual asset trading. A policy that regulators see as a guarantee of trust between investors and crypto companies. Confidence will ensure the sector’s sustainable development.
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