Hong Kong's securities regulator, the Securities and Futures Commission (SFC), is moving towards allowing retail investors to buy spot-traded cryptocurrency exchange-traded funds (ETFs).
"We welcome proposals to use innovative technology to improve efficiency and customer experience. As long as new risks are addressed, we're open to trying them out. Our approach will be consistent, regardless of asset," SFC Chief Executive Julia Leung said, according to Bloomberg.
Hong Kong regulators have continued to adopt a forward-thinking approach towards cryptocurrencies, with retail investors’ opinions towards exposure to digital assets shifting throughout the year.
In January, the SFC restricted access to cryptocurrency spot ETFs to retail investors, limiting it to professional investors with portfolios of at least HK$8 million (US$1 million).Then, in October, the SFC updated its rules to allow a broader range of investors who pass a knowledge test and meet a lower requirement than the professional investor threshold to participate in spot cryptocurrency and ETF investments.
The SFC has updated its policy in light of industry inquiries and latest market developments to expand seamless access and allow investors to deposit and withdraw virtual assets through intermediaries with appropriate safeguards.”
Issuers of publicly listed cryptocurrency products are required to publish risk disclosure statements.
According to Bloomberg, Ryun said, "If and when the cryptocurrency ecosystem gradually evolves to the point where it can broaden access for the general public, we will be happy to further open up access to a wider range of investors."
