• Hong Kong’s securities regulator has proposed legislation to limit retail investors‘ exposure to highly liquid crypto assets.
• Samsung’s investment arm is planning to list a Bitcoin futures ETF on the local stock exchange.
• Hong Kong is embracing the crypto industry despite a bearish winter that has discouraged many countries from investing.
Hong Kong is embracing the crypto industry despite a bearish winter that has discouraged many countries from investing. The island city’s top securities regulator, the Securities and Futures Commission (SFC), recently issued a directive to drive investment in certain crypto assets with high liquidity. This move has attracted the attention of tech giant Samsung’s investment arm.
The SFC has hinted at the introduction of new legislation that will promote digital assets with high liquidity. According to a report by the South China Morning Post, the securities regulator has revealed that trading in virtual assets will be restricted to highly liquid products for retail investors. SFC CEO Julia Leung Fung-yee said: „Some virtual assets platforms have over 2,000 products, but we do not plan to allow retail investors to trade in all of them. We will set the criteria that would allow retail investors to [only] trade in major virtual assets.“ The SFC is planning to issue a consultation paper in the next two months. This paper will outline the products and conditions for retail investors who wish to trade in virtual assets. It will also detail the licensing requirements for virtual asset trading firms.
Samsung’s investment arm, Samsung Asset Management Hong Kong (SAMHK), a subsidiary of Samsung’s investment arm Samsung Asset Management, is also looking to capitalize on Hong Kong’s stance on the crypto market. SAMHK is planning to list the Samsung Bitcoin Futures Active ETF on the local stock exchange. This ETF, which is composed of Bitcoin futures contracts, will give investors exposure to the digital asset without the risk of direct ownership.
The move by the SFC to limit retail investors‘ exposure to highly liquid crypto assets and Samsung’s decision to list a Bitcoin futures ETF mark a significant shift in the attitude of the Hong Kong government towards the crypto industry. The island city is now taking steps to become an attractive destination for crypto investors, while also protecting retail investors from the volatility associated with crypto assets.