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Hong Kong Opens the Way for Crypto ETFs

Hong Kong opens the way for crypto ETFs

The Securities and Futures Commission (SFC) of Hong Kong is considering allowing individual investors to acquire spot crypto ETFs. Julia Leung, the CEO of the SFC, expresses a favorable attitude towards the use of innovative technologies that improve efficiency and the client experience, emphasizing that the SFC is ready to test new avenues as long as associated risks are managed.

We are happy to explore this, as long as the new risks are taken into account. Our approach is consistent, regardless of the asset.

Julia Leung, CEO of the SFC

Throughout the year, the stance of Hong Kong regulators regarding individual exposure to digital assets has evolved. In January, the SFC tightened regulations, restricting individual investors’ access to spot crypto ETFs, limiting them to professional investors with portfolios of at least HKD 8 million (approximately USD 1 million). However, in October, the SFC revised its regulation, allowing a broader spectrum of investors to participate in crypto and ETF investments, provided they pass a knowledge test and meet net asset requirements – albeit lower than the threshold for professional investors.

Crypto-traded product issuers will be required to publish risk disclosure statements. The SFC, attentive to the evolution of the crypto ecosystem, is gradually considering expanding access to a wider audience, always in line with the comfort felt towards market developments.

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