Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), is gradually allowing retail investors to purchase spot cryptocurrency exchange-traded funds (ETFs).
SFC chief executive Julia Leung said: “We are open to suggestions for using innovative technology to improve efficiency and customer experience.
As long as it solves new risks, we're happy to give it a try. Regardless of the asset, our approach is consistent. "
Hong Kong regulators continued to take a progressively more liberal approach to cryptocurrencies, and views on retail exposure to digital assets shifted during the year.
In January this year, Hong Kong’s Securities and Futures Commission tightened regulations to restrict retail investors’ access to cryptocurrency spot ETFs, limiting such assets to professional investors with a portfolio of at least HK$8 million (US$1 million). Subsequently, the Securities and Futures Commission updated its rulebook in October to allow a wider range of investors to participate in spot cryptocurrencies and ETFs, but stipulated that they must pass a knowledge test and meet net worth requirements (albeit below the professional investor threshold).
The CSRC said in a notice: "This policy has been updated in response to the latest market developments and industry inquiries, and aims to further expand retail access through intermediaries and allow investors to , deposit and withdraw virtual assets directly to intermediaries.”
Issuers of listed cryptocurrency products are required to publish a risk disclosure statement.
“As the cryptocurrency ecosystem evolves to a point where we are comfortable with it, then we would be happy to further open access to the wider investing public,” Leung continued.
