The Securities and Futures Commission, or SFC, in Hong Kong reviews the rules for virtual currency transactions, including whether individuals can invest in exchange traded funds or ETFs.

According to a report by the South China Morning News on Wednesday, 2018 regulations limit cryptocurrency transactions through mutual fund funds or trading platforms to a minimum of HK $ 8 million ($ 1,028,624) for investment.

SFC’s Executive Vice President Julia Lyng Fung Yi said a re-evaluation would be carried out “to see if it still fits the purpose and if any modifications are needed.” Speaking at the Hong Kong Fintech Week conference in 2021, Fon Yi said that “virtual assets are moving towards traditional finance”, and therefore laws need to be revised.

“There are several [and] different types of virtual investment products available, and traditional offshore exchanges now offer crypto-ETFs.”
Crypto-ETFs are not available to Hong Kong investors, although these financial instruments can be purchased in other countries. In the United States, at least 12 applications for this money have been submitted to the Securities and Exchange Commission by companies that want to give speculators the opportunity to trade in cryptocurrencies. Companies seeking such an investment have made a number of requests to the Hong Kong regulator.

Since SFC introduced these rules three years ago, digital assets have grown exponentially on a large scale, with bitcoin (BTC) having quadrupled and reaching $ 62,238 this week. The rally was prompted by large investors and funds flocking to cryptocurrencies, believing that they would soon be used for payments, while retail investors joined the party for quick profits.

SFC is cooperating with the de facto central bank, the Hong Kong Monetary Authority, to issue a consolidated prospectus after the assessment. According to Fung Yi, SFC and HKMA will apply the principle of “same business, same risk, same rules” to banks, brokers and digital platforms that conduct activities related to cryptocurrencies.

Source: CoinTelegraph

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