Hong Kong Approves Bitcoin ETFs; Regulatory Changes Proposed in U.S. and Dubai; Australian Crypto Frauds Uncovered
Summary:
Hong Kong's Securities and Futures Commission (SFC) has approved three Bitcoin exchange-traded funds (ETFs), which could lead to significant Chinese banks purchasing Bitcoin. Conversely, U.S. firm VanEck's CEO believes it is unlikely that the U.S. Securities and Exchange Commission will approve their spot Ether (ETH) ETFs proposal in May. Meanwhile, the U.S. Treasury is calling for stronger enforcement powers to combat cryptocurrency-related crime, proposing reforms like secondary sanctions for those involved in illicit finance. In Dubai, the Virtual Asset Regulatory Authority plans to alleviate compliance costs for small crypto firms. In Australia, several investors have lost money due to fraudulent activities by unlicensed crypto mining companies known as the NGS companies.
In a noteworthy move, Hong Kong's regulatory authority, the Securities and Futures Commission (SFC), has given the green light to three Bitcoin exchange-traded funds (ETFs). These include offerings from Harvest Global Investments, China Asset Management, and a collaboration between HashKey and Bosera Asset Management. Following this initial acceptance, we anticipate that the Hong Kong Stock Exchange will need around a fortnight to complete related procedures to finalize these listings. With the first Bitcoin (BTC) ETFs now approved in Hong Kong, Herbert Sim, COO of Websea, a crypto exchange, believes it could stimulate the post-halving Bitcoin rally. Importantly, it may also lead to significant Chinese financial institutions purchasing Bitcoin.
Contrarily, VanEck's CEO holds that it appears unlikely that the U.S. Securities and Exchange Commission (SEC) will give the nod to spot Ether (ETH) ETFs in May. Jan van Eck stated that the agency would likely reject his firm’s application for a spot Ether ETF. VanEck, together with ARK Invest led by Cathie Wood, were the first to submit proposals for a spot Ether ETF in the U.S., with the SEC set to make a definitive decision by May 23 and 24 respectively.
Furthermore, U.S. Deputy Treasury Secretary Adewale Adeyemo is advocating for more extensive powers for his department to combat cryptocurrency-related crime. In a recent Senate Banking Committee hearing, Adeyemo recommended three reforms to enhance U.S. enforcement against worldwide malevolent individuals using cryptocurrencies. These suggested changes include secondary sanctions against “foreign digital asset providers” involved in unauthorized finance.
In Dubai, smaller cryptocurrency firms grappling with heavy regulatory burdens may soon have some relief. Matthew White, the CEO of the Virtual Asset Regulatory Authority (VARA) in Dubai, has shared his plans to decrease the compliance costs for small crypto entities. White proposed an arrangement in which larger players shoulder the financial burden, thus allowing smaller ones to operate within the ecosystem without carrying excessive compliance-related costs.
In Australia, numerous investors have collectively lost the equivalent of $104 million as a result of fraudulent crypto mining operations by the so-called NGS companies - NGS Crypto Pty, NGS Digital Pty, and NGS Group. The Australian Security and Investments Commission (ASIC) has filed legal actions against the companies and their directors. The NGS companies purportedly persuaded locals to allocate their self-managed superannuation funds into cryptocurrency for investing in blockchain mining packages, promising fixed-rate returns. ASIC has reported that these companies operated without the necessary Australian licensure.
Published At
4/15/2024 10:05:00 PM
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