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Hong Kong Becomes First Asian Market to Greenlight Crypto Spot ETFs

Published 23/12/2023, 15:04
Hong Kong Becomes First Asian Market to Greenlight Crypto Spot ETFs
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  • Hong Kong regulators declared their willingness to entertain applications for spot crypto ETFs.
  • The Hong Kong Stock Exchange expresses its intention to capitalize on the development.
  • Hong Kong Stock Exchange heralded Hong Kong as the inaugural market in Asia to greenlight the listing of crypto spot ETFs.

Amid Hong Kong regulators opening arms for spot crypto exchange-traded funds (ETFs), the Hong Kong Stock Exchange expresses its intention to capitalize on the development.

In a recent announcement, Hong Kong regulators declared their willingness to entertain applications for spot crypto ETFs. The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly released a statement acknowledging the transformation of the virtual asset landscape since 2018.

Note that the SFC had adopted a regulatory approach exclusively catering to professional investors. The new shift in perspective comes as part of Hong Kong’s broader relaxation of its stance on crypto this year. In October, the SFC amended its rule book, allowing more investors to participate in spot crypto and investing.

Now, the two regulatory bodies affirmed their preparedness to receive applications for the authorization of funds with exposure to virtual assets, explicitly mentioning virtual asset spot exchange-traded funds (VA spot ETFs).

Following the statement, the Hong Kong Stock Exchange enthusiastically embraced the notification, heralding Hong Kong as the inaugural market in Asia to greenlight the listing of crypto spot ETFs. Chinese reporter Colin Wu spotlighted the development in a recent tweet.

In particular, Luo Boren, the Head of Securities Product Development at the Hong Kong Stock Exchange, affirmed the exchange’s readiness to capitalize on the opportunity. He expressed a commitment to working closely with issuers and all stakeholders to integrate the innovative technology into the Hong Kong ETF market.

Furthermore, Boren highlighted Hong Kong’s pioneering role as the first market in Asia to permit listing virtual asset spot ETFs. According to Boren, this development not only reinforces Hong Kong’s position as the foremost digital asset center in the region but also actively contributes to the ongoing advancement of Hong Kong as the preferred ETF market in Asia.

The post Hong Kong Becomes First Asian Market to Greenlight Crypto Spot ETFs appeared first on Coin Edition.

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