The Hong Kong Securities and Futures Commission (SFC) has reportedly given the green light to three spot Bitcoin exchange-traded funds (ETFs). The approved ETFs include those offered by Harvest Global Investments, China Asset Management, and a partnership between HashKey and Bosera Asset Management. The Stock Exchange of Hong Kong is expected to finalize listing procedures and related arrangements in about two weeks.
The approval of the first spot Bitcoin ETFs in Hong Kong could potentially ignite a post-halving rally for Bitcoin, according to Herbert Sim, the chief operating officer of crypto exchange Websea. Sim believes that the upcoming approval of Bitcoin ETFs in Hong Kong will compel Chinese banks to start buying Bitcoin themselves.
On the other hand, the CEO of investment firm VanEck, Jan van Eck, expressed doubt that the United States Securities and Exchange Commission (SEC) will approve spot Ether ETFs in May. Van Eck stated that his firm’s spot Ether ETF application will likely be rejected. VanEck and Cathie Wood’s ARK Invest were the first to file for spot Ether ETFs in the US, but their applications are still awaiting final decisions.
In the US, the Deputy Treasury Secretary, Adewale Adeyemo, testified before the Senate Banking Committee, urging for more enforcement powers to combat illicit finance, terrorism, and sanctions evasion involving cryptocurrencies. Adeyemo proposed three reforms to enhance US enforcement efforts against international bad actors using crypto, including the introduction of secondary sanctions targeting “foreign digital asset providers” engaged in illicit finance.
In Dubai, smaller crypto firms are grappling with heavy regulatory burdens amidst the transformation of the city’s crypto landscape. Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), revealed plans to alleviate compliance costs for small crypto entities. White proposed a system where larger participants could bear the compliance costs, allowing smaller players to enter the ecosystem and be regulated without facing the same level of compliance expenses.
In Australia, hundreds of investors have lost over 160 million Australian dollars ($104 million) after a group of cryptocurrency mining companies collapsed into liquidation. The Australian Security and Investments Commission (ASIC) has initiated civil proceedings against the companies and their directors for allegedly targeting local investors to establish self-managed superannuation funds and converting the funds into cryptocurrency for investment in blockchain mining packages. The companies operated without the necessary Australian license and promised fixed-rate returns to investors.