Hong Kong’s regulator, exchange-traded fund managers in the city cryptocurrency detailed the basic requirements they must meet in order to list their products.
Hong Kong Wants To Attract Cryptocurrency Startups
The list forms part of a wider effort by city authorities to re-establish Hong Kong as a hub for virtual assets.
The finance minister and other top officials revealed on Monday their plans to lure crypto-related companies, including clearer trading rules.
Hong Kong’s regional government also reiterated its participation in China’s wide-ranging experiment with central bank digital currencies.
Among the plans in question, Julia Leung, Deputy CEO of the Securities and Futures Commission, said at Hong Kong Fintech Week yesterday, traded on the Chicago Mercantile Exchange (CME). bitcoin and Ethereum He said that there are cryptocurrency futures ETFs.
A document that emerged after the said forum ended has made public the key details ETF issuers must do to be able to list a cryptocurrency futures product in Hong Kong:
- All products must meet requirements for unit trusts, mutual funds, and unlisted structured products.
- The ETF issuer must demonstrate at least three years of track record and regulatory compliance.
- Issuers will need to demonstrate that their digital asset ETFs have sufficient liquidity.
- The net derivative exposure cannot exceed 100% of the total net asset value of the ETF.
- Issuers are required to conduct investor education studies prior to their release.
*Not investment advice.
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