Securities and Futures Commission (SFC) and Hong Kong Monetary Authority revised its policy regarding intermediaries in the cryptocurrency market.
In a joint circular, the departments said that in addition to existing virtual asset futures exchange-traded funds, they are ready to accept applications for such spot products.
In the clarifying document The SFC noted that crypto funds must:
- invest only in tokens traded in Hong Kong on regulated platforms;
- carry out all transactions through licensed market intermediaries;
- use only custodians approved by regulators.
Redemption of crypto-ETFs can be carried out in either cash or in-kind forms.
Prior consultation with the SFC will be required to launch funds with a cryptocurrency component of 10% of the total net asset value.
Meanwhile, in the United States, the SEC is reviewing more than a dozen applications to launch spot Bitcoin ETFs. Among the contenders are BlackRock, VanEck, Invesco, Fidelity Investments and WisdomTree.
In recent months, a number of companies have been actively consulting with the regulator and making changes to documents in accordance with the requirements. Industry experts expect the agency to approve the products en masse around January 8-10.
Let us recall that the former head of BitMEX, Arthur Hayes, suggested that the emergence of spot Bitcoin ETFs in Hong Kong will stimulate a positive decision by the SEC in light of the economic confrontation between the United States and China.
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2023-12-22 14:58:50
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