OSL Exchange: Ethereum is not a security in Hong Kong and will not be affected by US regulatory decisions

This site (120bTC.coM): On the 15th of this month, the Hong Kong Securities Regulatory Commission officially approved the six Bitcoin and Ethereum spots of three Chinese public fund giants, Boshi, Huaxia and Harvest. ETF was issued on the 29th and officially listed on the Hong Kong Stock Exchange today (30th).

Head of OSL ETF custody business: Ethereum is not a security

Since the United States has not relented on the application for clearance of Ethereum spot ETF, it was even reported last week that the SEC is still implementing the application for Ethereum spot ETF. enforcement actions that are classified as securities.

Therefore, yesterday (29th), Wayne Huang, head of the ETF custody business of OSL Exchange, attended a press briefing held by China Asset Management and was asked, "If the United States determines that Ethereum is a security in the future, will it "Affecting Hong Kong Ethereum Spot ETF", responded: Whether the United States defines Ethereum as a security does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission. The Hong Kong Securities and Futures Commission has its own process for whether a certain virtual asset should be defined as a security and whether it can be opened to investors. Unilateral definitions by the United States or other countries will not affect Hong Kong's legal definitions.

In addition, Wayne Huang also explained why Hong Kong was able to preempt the United States from approving the Ethereum spot ETF this time: The United States has multiple departments speaking out at the same time about cryptocurrency supervision, or trying to regulate it. Hong Kong’s regulatory responsibilities for cryptocurrencies have long been vested in the Securities and Futures Commission, and the Securities and Futures Commission has long given a very clear regulatory framework. Ethereum is not defined as a security, but has been included in Hong Kong supervision together with Bitcoin. Non-securities virtual assets are one of the two targets that can be opened to investors.

Mainland Chinese investors are temporarily unable to invest in Hong Kong ETFs

In addition, can investors from mainland China buy Hong Kong virtual currency ETFs? Zhu Haokang, head of digital asset management at China Asset Management, said that currently mainland Chinese investors cannot participate in investing in Hong Kong’s virtual asset ETFs: Currently, mainland Chinese investors are not allowed to invest in Hong Kong’s cryptocurrency spot ETFs. Hong Kong’s qualified investors, institutional investors, Retail investors, as well as international investors who meet the regulations, can invest in cryptocurrency spot ETFs. Whether there will be corresponding regulatory adjustments or a specific regulatory framework in the future remains to be seen.

Hong Kong Cryptocurrency ETF will benefit cryptocurrency prices

However, Zhu Haokang judged that the launch of Hong Kong Cryptocurrency ETF will be conducive to the increase in cryptocurrency prices:

First , Hong Kong’s cryptocurrency spot ETF will inject more liquidity into the crypto market.

Second, this will accelerate the compliance of the industry.

Third, this expands funding channels.

Fourth, investors may arbitrage from the price difference between ETFs and spot prices, which is conducive to the participation of more market makers and arbitrageurs.

Fifth, trading factors in traditional markets may directly affect the price of cryptocurrency.

Sixth, we believe that Hong Kong’s regulatory framework is relatively clear.

Seventh, we believe that Hong Kong can attract more Chinese investors to trade during Asian time periods and improve market liquidity.

The above is the detailed content of OSL Exchange: Ethereum is not a security in Hong Kong and will not be affected by US regulatory decisions. For more information, please follow other related articles on the PHP Chinese website!