A Call for Hong Kong to Emulate the US in Approving Bitcoin ETFs
A legislator in Hong Kong has urged the government to follow the example of the US and approve spot bitcoin exchange-traded funds (ETFs). Johnny Ng, a member of the Hong Kong Legislative Council, emphasized the region’s readiness to lead in Asia by implementing relevant policies and products in the cryptocurrency space.
The Importance of Establishing Hong Kong as a Global Hub
Ng highlighted the Securities and Futures Commission’s willingness to consider applications for spot bitcoin ETFs as a positive sign. He stressed the importance of establishing Hong Kong as a global hub in the virtual asset sector due to its rapid developments and competitive nature.
Focusing on Education and Awareness
In addition to advocating for the approval of spot bitcoin ETFs, Ng called on the Hong Kong government to focus on educating the public about cryptocurrencies. He emphasized the need for increased awareness and understanding of virtual assets to mitigate fraud and misuse risks.
Reviewing Policy Stance on Cryptocurrencies
In December, the Securities and Futures Commission and the Hong Kong Monetary Authority reviewed their policy stance on cryptocurrencies. They issued circulars outlining the requirements for launching spot crypto ETFs in Hong Kong.
Potential Introduction of Spot Crypto ETFs
Livio Weng, COO of HashKey, revealed that several fund managers, including those with Chinese backing, are exploring the possibility of introducing spot crypto ETFs in Hong Kong.
Cautious Approach to Cryptocurrency Market
While there is a willingness among Hong Kong’s financial authorities to consider spot crypto ETFs, they remain cautious about the broader cryptocurrency market. In late December 2023, the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority allowed retail investors to buy stablecoins but emphasized strict regulatory requirements for stablecoin issuers.
Hot Take: Hong Kong Urged to Lead in the Crypto Industry
Hong Kong legislator Johnny Ng has called on the government to take inspiration from the US and approve spot bitcoin exchange-traded funds (ETFs). Ng believes that Hong Kong is ready to lead in Asia by implementing innovative policies and products in the cryptocurrency space. He emphasizes the importance of establishing Hong Kong as a global hub in the virtual asset sector, given its rapid developments and competitive nature. In addition to approving ETFs, Ng urges the government to focus on educating the public about cryptocurrencies to mitigate fraud and misuse risks. While Hong Kong’s financial authorities are open to considering spot crypto ETFs, they remain cautious about the broader cryptocurrency market.
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