1 year ago
Hong Kong’s Securities and Futures Commission (SFC) and the Monetary Authority (HKMA) announced their readiness to judge applications for spot crypto exchange-traded funds (ETFs) successful a circular released connected Dec. 22.
The regulators stated:
“The SFC and the HKMA person reviewed their existing argumentation for intermediaries which privation to prosecute successful virtual asset-related activities (VA-related activities). The argumentation is updated successful airy of the latest marketplace developments, wherever the SFC has authorised VA futures ETFs and is prepared to judge applications for the authorisation of different funds with vulnerability to virtual assets, including virtual plus spot exchange-traded funds (VA spot ETFs).”
This enactment aligns with the recent trend successful Hong Kong towards embracing favorable regulations for the crypto sphere. The Asian state has proactively positioned itself arsenic a crypto-friendly hub, introducing assorted initiatives to foster maturation wrong the industry.
Last month, CryptoSlate reported that Julia Leung, the CEO of SFC, hinted that the regulator would see allowing retail investors to commercialized spot crypto ETFs if these investments comply with section regulations.
Spot-based ETFs person garnered important attraction successful caller months wrong the crypto community. Major fiscal players similar BlackRock and Grayscale person filed applications for a spot-based Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).
However, contempt wide optimism regarding these ETFs, the SEC has yet to o.k. immoderate application. Instead, the regulatory assemblage has postponed its determination until the pursuing year.
SFC outlines regulatory measures for Hong Kong ETFs
A abstracted SFC circular elaborate the request for the regulator to see approving an ETF exertion successful Hong Kong.
According to the regulator, transactions by the ETFs indispensable hap done SFC-licensed crypto platforms oregon authorized fiscal institutions that comply with HKMA’s regulatory requirements.
The regulator besides noted that it would licence some in-kind and in-cash subscription and redemption models for these spot ETFs.
On custodial requirements, the SFC specified that the fund’s trustee oregon custodian should lone delegate crypto custody functions to an SFC-licensed VATP oregon entities gathering the crypto custody standards outlined by the HKMA.
For the valuation of these spot virtual assets, money absorption companies indispensable instrumentality an indexing method reliant connected the commercialized measurement of virtual assets crossed salient trading platforms.
The station Hong Kong fiscal regulators are prepared for spot crypto ETF applications appeared archetypal connected CryptoSlate.
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