Hong Kong Welcomes Applications for Spot Crypto ETFs, Circular Issued by Metaverse Post
In Brief
The SFC and HKMA in Hong Kong have officially announced their acceptance of applications for virtual asset spot ETFs, expanding beyond just crypto futures products.
Today, the Hong Kong Securities and Futures Commission ( SFC ) and Hong Kong Monetary Authority ( HKMA ) released a joint circular wherein both regulatory bodies reviewed current policies affecting intermediaries and expressed their goals regarding involvement in virtual asset activities.
The SFC has expressed its willingness to accept applications for various fund types that would offer exposure to virtual assets, including VA spot ETFs, in addition to those focused on cryptocurrency futures. ETFs.
In a simultaneous circular, the SFC provided detailed criteria for funds wishing to invest directly in spot VA tokens available for trading to the Hong Kong public on SFC-approved virtual asset trading platforms (VATPs).
Any cryptocurrency transactions conducted by these ETFs must occur through platforms that possess SFC licensing or through authorized financial institutions, allowing both in-kind and cash-based subscriptions and redemptions for SFC-approved spot VA ETFs.
The SFC The funds must ensure that their crypto custody responsibilities are assigned solely to an SFC-licensed VATP or to custodians adhering to the standards set forth by the HKMA.
For valuing the spot virtual assets, management companies are advised to implement an indexing strategy that reflects trading volumes across major virtual asset platforms.
Hong Kong's Forward-Looking Crypto Regulations
Hong Kong is asserting its status as a pivotal center for digital assets in the Asia-Pacific area, with regulators showcasing a progressive attitude towards cryptocurrencies. The city has already introduced various futures-based crypto ETFs, such as the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF.
Earlier this year, the city rolled out its licensing framework for virtual asset trading platforms, allowing licensed exchanges to provide trading services to retail clients. OSL and HashKey Exchange These exchanges became pioneers in offering retail crypto services within the city.
The recent initiatives announced by the SFC and HKMA underscore Hong Kong's innovative approach to the cryptocurrency market, further solidifying its standing as a trailblazer in the dynamic digital asset ecosystem.
Disclaimer
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