{"id":14359,"date":"2022-11-09T11:32:33","date_gmt":"2022-11-09T11:32:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/report-regulation-bitcoin-news\/"},"modified":"2022-11-09T11:32:33","modified_gmt":"2022-11-09T11:32:33","slug":"report-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/report-regulation-bitcoin-news\/","title":{"rendered":"Report \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Hong Kong\u2019s Securities and Futures Commission (SFC) is \u201cactively looking\u201d to create a regulatory framework that allows crypto futures exchange-traded funds (ETFs), an SFC official reportedly said. \u201cWe have come to believe that some initial concerns about virtual asset futures ETFs have become manageable and can be addressed with proper safeguards.\u201d
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Rising Demand for Crypto ETFs in Hong Kong<\/h2>\n

Hong Kong\u2019s top financial regulator is \u201cactively looking\u201d to set up a regulatory framework that allows retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures, Ignites Asia reported Monday. The publication cited Julia Leung, deputy chief executive officer and executive director for the Intermediaries Division at the Securities and Futures Commission (SFC).<\/p>\n

Leung reportedly said last week during her keynote speech at Hong Kong Fintech Week that the SFC is \u201cactively looking to set up a regime to authorize ETFs that provide mainstream virtual assets with appropriate investor guardrails.\u201d<\/p>\n

She explained that initially, the Securities and Futures Commission will only allow ETFs that invest in bitcoin futures and ether futures traded on the Chicago Mercantile Exchange (CME) exchange.<\/p>\n

The SFC published a circular on Oct. 31 outlining the requirements under which it \u201cwould consider authorizing exchange-traded funds (ETFs) that obtain exposure to virtual assets (VAs) primarily through futures contracts (VA Futures ETFs) for public offering in Hong Kong,\u201d the regulator detailed, elaborating:<\/p>\n

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A broad range and larger number of investment products providing exposure to VAs, including VA-related ETFs offered in various markets globally, are now available to both retail and professional investors and have become increasingly popular. Similarly, demand for such products has increased in Hong Kong.<\/p>\n<\/blockquote>\n

The circular further states that the SFC \u201cis prepared to accept applications for authorization of VA Futures ETFs.\u201d<\/p>\n

A regulatory framework for crypto assets was first issued in November 2018 restricting access to professional investors. Defending the decision to disallow retail investors to trade crypto, Leung said: \u201cGiven the novelty of our framework and the high volatility of crypto assets, we believed it was prudent to impose an overarching \u2018professional investor\u2019 restriction.\u201d<\/p>\n

However, the executive director emphasized that Hong Kong\u2019s crypto ecosystem had made \u201csubstantial advancement\u201d in the past four years. During this time, the SFC had gained more experience in regulating crypto trading platforms and fund firms, she detailed, elaborating:<\/p>\n

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We have come to believe that some initial concerns about virtual asset futures ETFs have become manageable and can be addressed with proper safeguards.<\/p>\n<\/blockquote>\n

\u201cIt is now an opportune time to review the \u2018professional investor only\u2019 requirement,\u201d she added, emphasizing that the SFC is preparing to adjust its \u201cregulatory response and allow retail access<\/a>\u201d to security token offerings with certain safeguards in place.<\/p>\n

What do you think about Hong Kong looking to establish a regulatory framework to allow crypto futures ETFs for retail investors? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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