How is Hong Kong’s new crypto policy beneficial for bitcoin investors?

  • Hong Kong’s securities regulator will limit retail investors’ exposure to highly liquid crypto assets.
  • Samsung’s investment arm will list a Bitcoin futures ETF on a local exchange.

Hong Kong has moved to embrace the cryptocurrency industry despite a harsh winter that has prevented neighboring countries like Singapore from investing in the volatile industry. The island city’s largest securities regulator recently issued a directive to push investment in some highly liquid crypto assets.

Highly liquid crypto assets for retail investors in Hong Kong

Hong Kong’s Securities and Futures Commission (SFC) has hinted at the introduction of new legislation that would promote highly liquid digital assets. according to a report By South China Morning Post, the securities regulator revealed that trading in virtual assets will be limited to highly liquid products for retail investors.

Julia Leung Fong Yi, CEO of SFC, said:

Some virtual asset platforms have more than 2,000 products, but we do not plan to allow retail investors to trade in all of them. We will set the standards that will make this possible for private investors [only] Trade large virtual assets.

The High Safety Council intends to issue an advisory paper in the next two months. This document will describe products and terms for retail investors who wish to trade virtual assets. Licensing requirements for companies dealing in virtual assets will also be specified in this document.

Samsung’s investment arm is set to list a BTC futures ETF

Hong Kong’s liberal stance on the cryptocurrency market has caught the attention of the investment arm of tech giant Samsung. Samsung Asset Management Hong Kong (SAMHK), a subsidiary of Samsung’s investment arm Samsung Asset Management, will existing An active Samsung Bitcoin futures ETF on the Hong Kong Stock Exchange on January 13.

As of now, Hong Kong is the only Asian market that allows trading of Bitcoin futures ETFs. The Hong Kong Futures ETF currently has a trading volume of $70 million. But regulatory clarity from the island city administration also played a big role in attracting investment.

Leave a Reply

Your email address will not be published. Required fields are marked *