Hong Kong’s securities watchdog, the Securities and Futures Commission (SFC), is considering proposals to permit retail investors to purchase spot crypto Exchange Traded Funds (ETFs).
SFC Chief Executive Officer Julia Leung commented, “We welcome proposals using innovative technology that boosts efficiency and customer experience. We’re happy to give it a try as long as new risks are addressed.”
In January, the SFC had restricted retail investors from accessing crypto spot ETFs, limiting this to professional investors with portfolios of at least 8 million HKD ($1 Million).
However, in October, the SFC revised its policies to allow a wider range of investors to invest in spot-crypto and ETFs, subject to certain knowledge and net worth prerequisites.
“The policy is updated in light of the latest market developments and enquiries from the industry,” the SFC stated in a circular, also indicating that issuers of listed crypto products would need to publish risk disclosure statements.
Leung further added, “As the crypto ecosystem evolves step-by-step to the point where we’re comfortable, then we’re happy to open up more access to the wider investing public.”