As cryptocurrencies enter the mainstream, many governments are attempting to create associated products in response to rising investor demand.
Ming Pao stated on October 31 that Hong Kong is the latest location to announce intentions to create a cryptocurrency exchange-traded fund (ETF) targeting prominent cryptocurrencies like Bitcoin (BTC).
According to Leung Fung Yee, the CEO of the Hong Kong Securities and Futures Commission (SFC), the agency has been actively trying to build a framework to license the ETF.
The source said that the mechanism focuses primarily on implementing the right legislation to oversee the ETF. Yee noted that despite the fact that the crypto industry has obstacles such as excessive volatility, the decision to investigate an ETF was made after early worries about the market were manageable.
In addition, Yee noted that the ETF products will be subject to extra disclosure requirements and investor education obligations from their management firms.
The SFC said in a statement that it will hold a public consultation session to discuss how retail investors might have access to cryptocurrencies.
Hong Kong is open to growing the fintech sector with an emphasis on non-fungible tokens (NFT), the metaverse, and Web 3.0, according to the regulator. The government is already working on a pilot program to investigate the advantages of cryptocurrencies in the financial sector.
“We realize that DLT and Web 3.0 have the potential to become the future of banking and business, and that, with correct regulation, they will increase efficiency and transparency.”
Also Read: Hoskinson Sees Increasing Crypto Adoption When Sovereign Currencies Collapse
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