- The SFC has granted permission for VA futures ETFs to conduct IPOs.
- This action distinguishes the region from the regulations observed in mainland China.
The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), two of Hong Kong’s financial regulatory agencies, have made headlines in the cryptocurrency spot ETF market with their announcement. The SFC and the other relevant authorities have announced their intention to begin accepting applications to authorize VA spot ETFs, or exchange-traded funds that invest in virtual assets.
In the meantime, this action distinguishes the region’s cryptocurrency scene from the strict regulations observed in mainland China.
Forward-thinking Approach
A new era is about to dawn on Hong Kong’s financial scene as authorities show their openness to receiving proposals for VA spot ETFs. Hong Kong’s forward-thinking approach in the dynamic realm of virtual assets was highlighted in a circular jointly produced by the Hong Kong SFC and the HKMA.
Previously, the SFC had limited its virtual asset operations to accredited investors only. However, they have recently expanded their scope to enable a wider variety of investment products.
Moreover, the SFC has granted permission for virtual asset futures exchange-traded funds (VA futures ETFs) to conduct initial public offerings (IPOs) in Hong Kong and for virtual asset trading platforms to operate with retail investors.
Nevertheless, the readiness to accept applications for VA spot ETFs stands out as the SFC and HKMA revise their regulations on intermediaries involved in virtual asset-related operations.
Intermediaries distributing items connected to virtual assets are required to adhere to certain norms of behavior, which are laid forth in the circular. The SFC calls for further safeguards for investors since it knows how complicated these products are, particularly for regular people.
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