Hong Kong’s SFC Has Received Multiple Requests for Crypto ETFs

The SFC is reviewing its regulatory regime for virtual assets.

AccessTimeIconNov 3, 2021 at 5:25 a.m. UTC
Updated Nov 3, 2021 at 4:57 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

In recent months, the Hong Kong Securities and Futures Commission (SFC) has received “a number” of requests from local companies that want to offer crypto-related exchange-traded funds (ETFs) to their private bank and professional clients, SFC Deputy Chief Executive Officer and Executive Director Julia Leung said.

  • Speaking at Hong Kong Fintech Week, the SFC director gave a “glimpse” of the regulatory issues involved with ETFs including whether retail users be allowed access to crypto ETFs through online brokers, and should they face additional restrictions compared to non-crypto ETFs.
  • However, she did not give any indication of the regulator’s decisions on ETFs.
  • The SFC is currently reviewing its regulatory regime for crypto to see if it is still “fit for purpose,” Leung said.
  • Under the regime, virtual asset service providers have to be licensed to operate in Hong Kong and can only offer services to professional investors, defined as individuals with a portfolio of over HK$8 million (US$1 million) or companies with more than $5 million in total assets. SFC-regulated fund managers can invest up to 10% of their gross asset value in crypto, and can apply for a special license if they wish to invest more.
  • Last month, the U.S. Securities and Exchange Commission approved the first bitcoin futures ETF.
  • In August, Leung said that Hong Kong should crack down on unlicensed crypto trading.


DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.