SFC re-evaluates crypto ETFs laws
Hong Kong's Securities and Futures Commission, or SFC, is investigating legislation governing virtual currency transactions, including whether people can participate in exchange-traded funds or ETFs.
According to a South China Morning News report published on Wednesday, the legislation limits cryptocurrency purchases through funds or trading platforms to professional investors with a minimum investment of HK$8 million ($1,028,624.00).
The SFC has stated that it would re-evaluate current regulations on virtual assets to see if they are still suitable for purpose and whether they need to be modified. According to SFC's deputy chief executive, Julia Leung Fung-yee, "virtual assets are moving nearer traditional finance," necessitating a reassessment of the legislation.
“More, [and] different types of virtual asset investment products are available and conventional exchanges overseas now offer cryptocurrency ETFs.”
At least 12 applications for these funds have been filed with the SEC by companies looking to provide speculators a chance to invest in cryptocurrencies.
The “boom” was fueled by large investors and funds pouring money into cryptocurrencies in the hope that they may soon be utilized in payments, while individual investors jumped in for rapid profits.
Following the review, the SFC is working with the Hong Kong Monetary Authority (HKMA), the de facto central bank, to draft a uniform circular.