Despite a brutal winter that has deterred neighbours like Singapore from investing in this volatile sector, Hong Kong has moved to embrace the crypto industry. The top securities regulator for the island city recently issued a directive encouraging investment in a select group of crypto assets with high liquidity.
Highly liquid crypto assets for retail investors in Hong Kong
The Securities and Futures Commission (SFC) of Hong Kong has suggested introducing new legislation to support highly liquid digital assets. According to a South China Morning Post report, the securities regulator has disclosed that trading in virtual assets will be limited to highly liquid products for retail investors.
Julia Leung Fung-yee, CEO of SFC, stated:
“While some platforms for virtual assets have over 2,000 products, we do not intend to let retail investors trade in all of them. We’ll establish the standards that will only permit significant virtual assets to be traded by retail investors.
The SFC intends to release a consultation paper within the following two months. The products and requirements for retail investors who want to trade in virtual assets will be described in this paper. This document will also include the licencing requirements for companies that trade virtual assets.
Samsung’s investment arm set to list BTC futures ETF
The investment arm of tech giant Samsung has taken note of Hong Kong’s liberal stance on the cryptocurrency market. The Samsung Bitcoin Futures Active ETF will be listed on the Hong Kong stock exchange on January 13 by Samsung Asset Management Hong Kong (SAMHK), a division of Samsung Asset Management, the company’s investment arm.
The only Asian market that currently permits trading of Bitcoin Futures ETFs in Hong Kong. A trading volume of $70 million is currently recorded for the Hong Kong Crypto Futures ETF. However, the administration of the island city’s regulatory clarity has also significantly contributed to luring investment.