Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has announced that it is ready to receive applications for spot crypto exchange-traded funds (ETFs). In collaboration with the Hong Kong Monetary Authority, the SFC has reviewed its policy for intermediaries involved in virtual asset-related activities.
The SFC is now prepared to accept applications for the authorization of various funds, including Virtual Asset Spot ETFs, in addition to existing crypto futures ETFs. The regulator has outlined criteria for funds to directly invest in identical spot virtual asset tokens available to the Hong Kong public on SFC-licensed Virtual Asset Trading Platforms (VATPs).
It is emphasized that cryptocurrency transactions conducted by these ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions. In-kind and in-cash subscriptions and redemption are permissible for SFC-authorized spot Virtual Asset ETFs.
The SFC has specified that the fund’s trustee or custodian should only delegate its crypto custody function to an SFC-licensed VATP or those meeting the crypto custody standards set by the Hong Kong Monetary Authority.
For spot virtual asset valuation, the fund’s management companies should adopt an indexing approach based on virtual asset trade volume across major virtual asset trading platforms. Funds planning to have crypto exposure exceeding 10% of their net asset value must undergo prior consultation with the SFC.
In contrast to the crackdown on cryptocurrency activities in mainland China, Hong Kong has been receptive to crypto firms this year, actively encouraging collaboration with banks. The city has issued policy statements on cryptocurrencies to enhance its status as a global financial hub and has implemented a licensing system for virtual asset trading platforms.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇨🇳 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | Hong Kong Monetary Authority, BlockShow, Securities and Futures Commission, Virtual Asset Trading Platforms, HKMA, BlockDown |
| Currencies | None |
| Securities | None |
