After a series of Bitcoin spot ETFs were launched in the United States, the possibility of similar products being introduced in Hong Kong has attracted attention. It has been reported that Harvest Fund Management (Hong Kong) has submitted an application for a Bitcoin spot ETF to the Securities and Futures Commission of Hong Kong. In addition, as the regulatory authorities in Hong Kong are accelerating the promotion of stablecoin-related regulations, it is rumored that multiple institutions are discussing the planned stablecoin experiments with the Hong Kong Monetary Authority.
Submitting the First Bitcoin Spot ETF Application in Hong Kong
According to Tencent News “Yi Xian”, Harvest Fund Management (Hong Kong) submitted an application for a Bitcoin spot ETF to the Securities and Futures Commission of Hong Kong on Friday, becoming the first institution in Hong Kong to submit such an application. Harvest Fund Management has not commented on this.
It is reported that the Securities and Futures Commission hopes to expedite the approval process for the first Hong Kong Bitcoin spot ETF, and plans to list the first spot ETF on the Hong Kong Stock Exchange after the Spring Festival. In addition, the Securities and Futures Commission may adopt the approach used in the United States, which is to approve applications from multiple institutions at once. Currently, besides Harvest Fund Management, no other institutions have submitted applications.
Testing Stablecoins in the “Regulatory Sandbox”
According to Bloomberg, informed sources revealed that Hong Kong is making efforts to launch regulations related to stablecoins as soon as this quarter, which has sparked interest from multiple companies including Harvest Global Investments Ltd., RD Technologies, and Venture Smart Financial Holdings Ltd. (VSFG).
The sources stated that Harvest Global Investments Ltd., RD Technologies, and Venture Smart Financial Holdings Ltd. are in discussions with the Hong Kong Monetary Authority (HKMA) regarding the planned stablecoin experiments, which are referred to as the “regulatory sandbox”.
The Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau (FSTB) started consulting on stablecoin rules last month and stated that the regulatory sandbox would help convey regulatory expectations. The sources stated that it is currently uncertain whether the upcoming framework can be finalized before the end of March, and it cannot be guaranteed that all institutions seeking to participate in the experiments will be approved.
A spokesperson for the Hong Kong Monetary Authority stated that they are preparing for the launch of the stablecoin sandbox and will announce details at an appropriate time. Harvest Global Investments did not respond to requests for comment.
Venture Smart Financial Holdings stated that they expect the regulatory sandbox to start operating in the first quarter. Rita Liu, Chief Operating Officer of RD Technologies, stated that the company plans to participate in the sandbox once approved by the regulatory authorities, and they are seeking to launch HKDR stablecoin for cross-border payments between enterprises.
Sean Lee, Senior Advisor and Head of Stablecoin at Venture Smart Financial Holdings, stated that considering Hong Kong’s developed financial industry, tokens pegged to the Hong Kong dollar can become a “strong alternative” to USD stablecoins.
Related reports: “Bloomberg: Venture Smart Financial Holdings seeks to launch Bitcoin spot ETF in Hong Kong in the first quarter of this year” “Joint announcement by the Securities and Futures Commission and the Hong Kong Monetary Authority: Ready to accept applications for virtual asset spot ETFs”
