Regulation
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The Hong Kong Securities and Futures Commission is developing a mechanism that will legally launch the city-state’s first cryptocurrency ETF. Meanwhile, the Hong Kong Treasury has praised Web3 and blockchain.
SFC – Hong Kong Securities and Futures Commission – is developing an ETF authorization mechanism. It will allow launching the first cryptocurrency ETF for the local market. The possible launch of an exchange instrument based on cryptocurrency is reported by the local publication Ming Pao, citing the head of the commission. Leung Fung Yee.
In an interview with journalists of the publication, Yi noted that the crypto industry is still facing some problems, including high volatility. However, the risks have become manageable and the agency is now ready to explore crypto ETFs.
Exchange-traded funds – ETFs – based on bitcoin or other large crypto assets will be able to get approval from the regulator.
To protect investors, the SFC will apply additional measures. In particular, companies launching crypto ETFs will be required to disclose their investment strategy and conduct investor education.
The agency has announced consultations that will detail access to crypto-currency tools for retail investors.
The Treasury also positively assessed the cryptocurrency. Treasury Representative Christopher Hui gave a comment:
We recognize that WANs and Web 3.0 can be the future of finance and commerce and are expected to improve efficiency and transparency if properly regulated. The government is ready to embrace this future, and we welcome the clustering of the fintech and virtual asset community and talent in Hong Kong, and we will promote the sustainable development of financial services along the entire virtual asset value chain.
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