The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are also planning a sandbox to provide guidance on compliance.
Hong Kong’s Securities and Futures Commission said cryptocurrency transactions conducted by ETFs must occur through SFC-licensed crypto platforms or authorized financial institutions.
The statement from the SFC and HKMA comes as expectations mount the U.S. SEC is on the verge of approving a spot bitcoin ETF.
According to the securities regulator, misleading information online could encourage individuals to invest in the HKD token issued by HongKongDAO.
A former journalist, Leung is the world's most powerful female financial regulator in an increasingly important center for crypto.
Hong Kong was once a hub for ICOs until regulators cracked down. Times have changed.
Hong Kong clients will be able to purchase Bitcoin and Ether in their personal accounts.