A Hong Kong legislator has known as on the federal government to swiftly emulate the U.S., which authorized spot bitcoin exchange-traded funds on Jan. 10.
In a Jan. 11 X put up, Hong Kong Legislative Council member Johnny Ng urged town to foster innovation within the cryptocurrency house, emphasizing the area’s readiness to guide in Asia by implementing related insurance policies and merchandise.
Ng cited the Securities and Futures Fee’s (SFC) prior willingness to think about purposes for spot bitcoin ETFs as a constructive signal. He additionally underscored the significance of creating Hong Kong as a world hub within the digital asset sector, particularly given the trade’s fast developments and aggressive nature.
Along with advocating for the approval of spot bitcoin ETFs, Ng known as on the Hong Kong authorities to give attention to educating the general public about cryptocurrencies. He emphasised the necessity for elevated consciousness and understanding of digital belongings to mitigate the danger of fraud and misuse.
In December, The Securities and Futures Fee and the Hong Kong Financial Authority, town’s central banking establishment, reviewed their coverage stance on cryptocurrencies. The regulators issued two circulars detailing the necessities for launching spot crypto ETFs in Hong Kong.
Livio Weng, COO of HashKey, a Hong Kong-based crypto trade, revealed on Jan. 10 that a number of fund managers, together with these with Chinese language backing, are exploring the potential of introducing spot crypto ETFs within the metropolis.
Hong Kong has already seen the launch of futures crypto ETFs, such because the Samsung Bitcoin Futures Energetic ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF. These merchandise are accessible to traders with portfolios over $2 million by way of UBS in Hong Kong.
Whereas there’s a willingness amongst Hong Kong’s monetary authorities to think about spot crypto ETFs, their strategy to the broader cryptocurrency market stays cautious.
In late December 2023, the Monetary Providers and the Treasury Bureau (FSTB) and the Hong Kong Financial Authority (HKMA) issued an announcement permitting retail traders to purchase stablecoins. Nevertheless, they emphasised strict regulatory necessities for stablecoin issuers, together with acquiring a particular HKMA license.
The license mandates full backing of stablecoins with equal reserves, segregation of reserve belongings, clear disclosure, common reporting, and institution of a bodily workplace in Hong Kong staffed with a CEO and senior administration to make sure regulatory compliance.