Hong Kong previously only allowed retail participation in cryptocurrency futures ETFs, which hold virtual-asset futures contracts, instead of direct investments in crypto tokens at their spot prices.
Hong Kong’s latest initiative shows the determination of policymakers to rebuild investors’ confidence in virtual assets, following a number of large financial scandals involving cryptocurrencies – including the recent cases of Hounax and JPEX in the city, as well as the spectacular collapse of crypto exchange FTX in November last year.
“This move puts Hong Kong in a leading position in the global crypto landscape,” said Neil Tan, managing partner at local fintech consulting firm Tsunami Advisors and chairman of the FinTech Association of Hong Kong.
“By introducing a regulated and accessible investment vehicle like a spot…
