According to Bloomberg, the Hong Kong Securities and Futures Commission (SFC) is reportedly working on granting retail investors access to spot exchange-traded funds (ETFs) that offer the opportunity to invest directly in cryptocurrencies.
Julia Leung, the Chairperson of the Securities and Futures Commission’s Executive Board, stated that the launch of ETFs would enhance customer experience. Leung mentioned that they would be pleased to introduce spot crypto ETFs for small investors, provided that new risks are well managed.
Under new regulations in Hong Kong, brokerage firms are required to administer a knowledge test on virtual assets to their clients before conducting any transactions. However, corporate professional investors and qualified corporate professional investors are exempt from this test.
With the initiation of licensing, Hong Kong has begun officially granting licenses for platforms that will trade in virtual assets. Under this new system, licensed exchanges will now also be able to offer retail trading services. Among the first companies to receive licenses are leading names such as HashKey and OSL.