Hong Kong: The New Crypto Capital? ETFs Give a Big Boost
To the pleasure of ETFs The laws in Hong Kong about cryptocurrencies seem to be moving in the right direction. As lawmakers work to make it easier for people to invest in Bitcoin (BTC) and its offspring, regulators want to clear the way for the launch of an exchange-traded fund for cryptocurrencies (ETF).
Are exchange-traded cryptocurrency funds coming to Hong Kong’s stock markets in the near future?
In a speech, Julia Leung, the Deputy CEO of Hong Kong’s Securities and Derivatives Commission (SFC), said that the Hong Kong government is thinking about whether or not to let some cryptocurrency exchange-traded funds be sold (ETFs).
According to Julia Leung, the Chicago Mercantile Exchange (CME) futures contracts for Bitcoin and Ethereum are likely to be the first funds to get regulatory approval. She emphasised that the risks of ETFs tied to cryptocurrency derivatives have become “manageable.” Investors who are at risk because they own exchange-traded funds would benefit from having the right protections in place.
Anyone in Hong Kong, whether they are a business or an individual, can use cryptocurrencies.
The SFC is also going to hold a public meeting to talk about letting small investors trade virtual assets, so keep an eye out for that. Hong Kong lawmakers are thinking about new rules that would allow cryptocurrency exchanges to offer their services to the investors mentioned above.
At the moment, the BC Group and Hashnet can only offer their services to Hong Kong residents who are professional investors and can show they have a certain minimum amount of money.
When will everyone in Hong Kong be able to buy Bitcoin?
Legal permission to run a business has only been given to The BC Group and Fishnet. Urszula McCormack, a partner at the law firm King & Wood Mallesons, says that the restrictions on the services that crypto exchanges can offer have stopped other businesses in the industry from applying for this license. They are less likely to do it because of the bans on taking leveraged positions and trading by-products.
If this keeps up, Hong Kong will be well on its way to having a court that likes cryptocurrency. The Office of Financial Services in the U.S. Department of the Treasury has said that virtual assets are “growingly accepted” as a way for individual and institutional investors all over the world to invest.
Huobi Tech also put down money at the beginning of this year for the launch of a cryptocurrency exchange-traded fund (ETF) for small investors in Hong Kong. Once this loosening of rules, which is what lawmakers and regulators want, is put into place, Huobi Tech’s projects should be able to move forward.