How is Hong Kong’s new crypto policy beneficial to Bitcoin investors?

• Hong Kong’s securities regulator will limit the retail investors’ exposure to crypto assets with high liquidity. 
• Samsung’s investment arm will list Bitcoin futures ETF on the local stock exchange. 

Hong Kong has moved to embrace the crypto industry despite a ruthless winter that has discouraged neighboring countries like Singapore from investing in this volatile industry. The island city’s top securities regulator recently issued a directive to drive investment in certain crypto assets with high liquidity. 

Highly liquid crypto assets for retail investors in Hong Kong

The Securities and Futures Commission (SFC) of Hong Kong 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. The licensing requirements for virtual asset trading firms will also be detailed in this document. 

Samsung’s investment arm set to list BTC futures ETF

Hong Kong’s liberal stance on the crypto market has attracted the attention of tech giant Samsung’s investment arm. Samsung Asset Management Hong Kong (SAMHK), a subsidiary of Samsung’s investment arm Samsung Asset Management, will list the Samsung Bitcoin Futures Active ETF on Hong Kong’s stock exchange on 13 January. 

As of now, Hong Kong is the only Asian market that allows trading of Bitcoin Futures ETFs. The Hong Kong Crypto Futures ETF currently boasts a trading volume of $70 million. However, the regulatory clarity from the island city’s administration has also played a major part in attracting investment.