The fall of crypto giants this year reignited questions about the stability of cryptocurrencies and their impact on fiat ecosystems. Hong Kong Monetary Authority (HKMA) assessed the situation and found that the instabilities of crypto assets, including asset-backed stablecoins, can potentially spill over to the traditional financial system.
The HKMA
The Securities and Futures Commission of Hong Kong advised management companies looking to offer exchange-traded fund (ETF) offerings to “have a good track record of regulatory compliance,” among other requirements.
HKEX welcomes the SFC’s announcement today permitting the listing of ETFs with virtual assets as their underlying. This will support the continued growth of #HongKong as Asia’s premier #ETF marketplace, further strengthening Hong Kong’s role as an international financial centre. pic.twitter.com/zLRgAUV6iX
— HKEX ????? (@HKEXGroup) October 31, 2022
The SFC circular came as part of a policy update from Hong Kong’s government, which announced its readiness to engage with global crypto exchanges on regulatory issues.
