The Securities and Futures Commission (SFC) of Hong Kong has announced that it is reviewing the regulations for crypto-exchange-traded funds.
The review process is related to virtual currency transactions, including whether individuals can invest in exchange-traded funds, the regulator said in a statement published by Coin Telegraph. .
According to a report by the South China Morning News on Wednesday, the 2018 regulations limit cryptocurrency transactions via funds or exchanges to professional investors with an investment of at least $8 million. Hong Kong.
The agency's executive vice president, Julia Leung Fung Yi, said a reassessment would be done to see if it was still fit for purpose and if modifications were needed.
Virtual assets are moving towards traditional finance, hence the need to review the laws, said Fong Yi, speaking at the Hong Kong Fintech Week 2021 conference.
More different types of virtual asset investment products are available, and traditional offshore exchanges are now offering cryptocurrency ETFs.
Crypto exchange-traded funds are not available to Hong Kong-based investors, although these financial instruments can be purchased from other countries.
In the US, at least 12 applications for these funds have been submitted to the Securities and Exchange Commission by companies wishing to provide speculators with an opportunity to operate in cryptocurrencies.
Many inquiries have been made to the Hong Kong regulator by companies wishing to provide such investments.
The Securities and Futures Commission is collaborating with the de facto central bank, the Hong Kong Monetary Authority (HKMA), to produce a standardized post-assessment circular.
According to Fong Yi, the Securities and Futures Commission and the Hong Kong Monetary Authority will apply the same business principle, the same risks and the same rules to banks, brokers and digital platforms that conduct activities related to currency assets digital.
