Hong Kong's Securities and Futures Commission (SFC) has signalled its openness to the evolving virtual asset market by inviting applications for Virtual Asset Spot Trading Exchange Traded Funds (Virtual Asset Spot Trading ETFs). This development comes as part of a larger regional shift towards embracing the potential of digital currencies and blockchain technology, highlighted by recent revelations from China about its renewed focus on the crypto industry.
The SFC's circular, published Friday, marks a significant shift in Hong Kong's stance towards virtual assets, positioning the city as a potential leader in the space. It invites applications for funds involving virtual assets and acknowledges that approved funds can directly invest in virtual asset tokens permitted for retail trading on compliant exchanges in Hong Kong. This move is a clear indication of the city’s commitment to becoming a leading hub in the virtual asset space, providing a regulated and innovative financial landscape.