Hong Kong ‘Actively Looking’ to Establish Regulatory Framework to Allow Crypto Futures ETFs: Report

Hong Kong’s Securities and Futures Commission (SFC) is “actively looking” to make a regulatory model that allows crypto futures exchange-traded funds (ETFs), an SFC authoritative reportedly said. “We person travel to judge that immoderate archetypal concerns astir virtual plus futures ETFs person go manageable and tin beryllium addressed with due safeguards.”

Rising Demand for Crypto ETFs successful Hong Kong

Hong Kong’s apical fiscal regulator is “actively looking” to acceptable up a regulatory model that allows retail investors to commercialized exchange-traded funds (ETFs) with vulnerability to cryptocurrency futures, Ignites Asia reported Monday. The work cited Julia Leung, lawman main enforcement serviceman and enforcement manager for the Intermediaries Division astatine the Securities and Futures Commission (SFC).

Leung reportedly said past week during her keynote code astatine Hong Kong Fintech Week that the SFC is “actively looking to acceptable up a authorities to authorize ETFs that supply mainstream virtual assets with due capitalist guardrails.”

She explained that initially, the Securities and Futures Commission volition lone let ETFs that put successful bitcoin futures and ether futures traded connected the Chicago Mercantile Exchange (CME) exchange.

The SFC published a circular connected Oct. 31 outlining the requirements nether which it “would see authorizing exchange-traded funds (ETFs) that get vulnerability to virtual assets (VAs) chiefly done futures contracts (VA Futures ETFs) for nationalist offering successful Hong Kong,” the regulator detailed, elaborating:

A wide scope and larger fig of concern products providing vulnerability to VAs, including VA-related ETFs offered successful assorted markets globally, are present disposable to some retail and nonrecreational investors and person go progressively popular. Similarly, request for specified products has accrued successful Hong Kong.

The circular further states that the SFC “is prepared to judge applications for authorization of VA Futures ETFs.”

A regulatory model for crypto assets was archetypal issued successful November 2018 restricting entree to nonrecreational investors. Defending the determination to disallow retail investors to commercialized crypto, Leung said: “Given the novelty of our model and the precocious volatility of crypto assets, we believed it was prudent to enforce an overarching ‘professional investor’ restriction.”

However, the enforcement manager emphasized that Hong Kong’s crypto ecosystem had made “substantial advancement” successful the past 4 years. During this time, the SFC had gained much acquisition successful regulating crypto trading platforms and money firms, she detailed, elaborating:

We person travel to judge that immoderate archetypal concerns astir virtual plus futures ETFs person go manageable and tin beryllium addressed with due safeguards.

“It is present an opportune clip to reappraisal the ‘professional capitalist only’ requirement,” she added, emphasizing that the SFC is preparing to set its “regulatory effect and allow retail access” to information token offerings with definite safeguards successful place.

What bash you deliberation astir Hong Kong looking to found a regulatory model to let crypto futures ETFs for retail investors? Let america cognize successful the comments conception below.

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