1 year ago
Hong Kong’s fiscal regulator has published rules for spot bitcoin exchange-traded money (ETF) issuers, allowing the usage of some currency and in-kind instauration models. This attack contrasts with the U.S. Securities and Exchange Commission (SEC), which insists connected the exclusive usage of the currency instauration exemplary for spot bitcoin ETFs.
Hong Kong Publishes Spot Bitcoin ETF Rules
The Hong Kong Securities and Futures Commission (SFC) published a circular connected Dec. 22 for “authorized funds with vulnerability to virtual assets.” The regulator explained that the circular sets retired the requirements nether which the SFC would see authorizing concern funds with vulnerability to virtual assets (VAs) of much than 10% of their nett plus worth (NAV) for nationalist offerings successful Hong Kong.
“Globally, the VA scenery has been evolving rapidly,” the SFC stated, noting that a broader scope and a larger fig of concern products providing crypto exposure, including crypto exchange-traded funds (ETFs), are present disposable to some retail and nonrecreational investors. Noting that they “have go progressively popular,” the regulator detailed:
Demand for these products has besides accrued successful Hong Kong. In airy of these developments, the SFC has introduced regimes that let the offering of definite VA products to the Hong Kong nationalist with due capitalist extortion safeguards.
The SFC explained that it started accepting applications for ETFs with vulnerability to crypto assets chiefly done futures contracts successful October past year. “The SFC’s licensing authorities of virtual plus trading platforms (VATPs) besides became effectual successful June 2023, enabling Hong Kong investors to straight entree large-cap spot VA, taxable to definite eligibility requirements and robust capitalist extortion safeguards,” the regulator added.
Spot crypto transactions and acquisitions by SFC-authorized funds indispensable beryllium carried retired done SFC-licensed crypto trading platforms oregon authorized fiscal institutions, adhering to the regulatory requirements of the Hong Kong Monetary Authority (HKMA), the SFC emphasized. The regulator stressed:
Both in-kind and in-cash subscription and redemption are allowed for SFC-authorised spot VA ETFs.
Hong Kong is paving the mode for spot bitcoin ETFs with some currency and in-kind models portion the U.S. Securities and Exchange Commission (SEC) remains steadfast connected the currency model. The U.S. regulator has reportedly fixed spot bitcoin ETF applicants until the end of the week to record amended registrations for inclusion successful the archetypal batch of decisions successful aboriginal January.
What bash you deliberation astir Hong Kong’s regulator preparing to o.k. spot bitcoin ETFs utilizing some the currency and in-kind models? Let america cognize successful the comments conception below.
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