📰 Table Of Contents
Hong Kong Securities & Futures Professionals Association Advocates Self-Regulatory Committee
The Hong Kong Securities & Futures Professionals Association (HKSFPA) proposed the establishment of a self-regulatory committee within the city’s crypto firms on April 22. The aim is to enhance compliance monitoring and industry development.
Industry-Led Licensing Authority Recommendation
In a recent recommendation letter, the HKSFPA emphasized the need for an overarching organization to foster the development of Hong Kong’s financial market industry. It criticized the current regulatory landscape for being overly focused on supervision without adequate mechanisms for industry-wide coordination.
- SFC Delegation of Licensing Powers
- The HKSFPA suggested that the Securities & Futures Commission (SFC) delegate licensing powers to industry players. This proposal aims to maintain Hong Kong’s competitiveness in the global securities market and solidify its position as an international financial center.
- Establishment of Self-Regulatory Institution
- The recommendation also highlighted the importance of establishing a self-regulatory institution comprising representatives from the futures, asset management, and virtual asset industries.
Debate on Self-Regulation Efficacy
The efficacy of self-regulation in maintaining a balanced risk-reward dynamic is a subject of debate. Recent developments in Lithuania, tightening its regulatory framework, contrast with Hong Kong’s relatively accommodating stance towards virtual asset firms.
Approval of First Batch of Spot Bitcoin ETFs in Hong Kong
The Hong Kong Securities and Futures Commission (SFC) approved the first batch of spot Bitcoin ETFs on April 15. This approval paves the way for the Hong Kong Stock Exchange (HKEX) to finalize listing procedures and other arrangements in approximately two weeks.
The approved spot Bitcoin and Ether ETFs allow new ETF shares to be issued using BTC and ETH, following an in-kind ETF model. This differs from the cash-create redemption model used in the United States for spot Bitcoin ETFs.
Market Impact and Investor Eligibility
While the approval has received praise from the crypto community and local Hong Kong exchanges, some express skepticism about the ETFs’ success within the region. Mainland China investors may face restrictions in buying Hong Kong-listed spot Bitcoin and Ether ETFs due to regulatory barriers.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
