Explore how ETF issuers in Hong Kong remain undeterred by the US crypto crackdown, asserting that Ethereum is not a security. OSL Digital Securities head Wayne Huang emphasized Hong Kong's independent regulatory approach and clear definition of Ethereum, affirming it as non-security. Despite US SEC investigations, Hong Kong proceeds with the launch of spot Ether ETFs, highlighting regulatory disparities between the two jurisdictions.
ETF issuers in Hong Kong are confident in proceeding with the launch of spot crypto ETFs, dismissing concerns over the US crypto crackdown potentially classifying Ethereum as a security. Wayne Huang, head of OSL Digital Securities, emphasized Hong Kong's independent regulatory approach and clear definition of Ethereum, asserting it as non-security.
According to Huang, the Hong Kong Securities Regulatory Commission's decision-making is unaffected by the US classification of Ethereum. He highlighted Hong Kong's established procedures for determining crypto assets' status and retail investor eligibility, distinct from US regulatory frameworks.
Hong Kong's proactive stance on Ethereum ETFs reflects its regulatory clarity compared to the US, where multiple departments are involved in cryptocurrency regulation, leading to ambiguity. Huang underscored Hong Kong's readiness to launch Ethereum spot ETFs, citing its clear definition of Ethereum and its suitability for retail investors.
Despite ongoing US SEC investigations into Ethereum's classification, Hong Kong ETF issuers, including China Asset Management, Bosera Asset Management, and Harvest Global Investments, proceed with the launch of crypto ETFs. OSL Digital Securities was selected as the first virtual asset trading and sub-custodian partner by China Asset Management, reflecting confidence in Hong Kong's regulatory environment.
China Asset Management, a leading fund family in China, demonstrates Hong Kong's attractiveness for ETF launches due to its regulatory clarity and independent decision-making. Despite regulatory disparities between the US and Hong Kong, the latter remains steadfast in its commitment to advancing the crypto ETF market.
(MARTIN YOUNG, COINTELEGRAPH, 2024)