Hong Kong has previously determined that Ethereum is not regarded as a security, according to Wayne Huang, the head of OSL Digital Securities.
Hong Kong-based companies that create exchange-traded funds (ETFs) don’t care that the US is regulating cryptocurrencies. They don’t fear that Ethereum (ETH) is comparable to security.
Wayne Huang of OSL Digital Securities and Zhu Haokang of China Asset Management spoke with the media on April 29. This was before the introduction of spot cryptocurrency ETFs in Hong Kong. They responded to inquiries from large institutions about the new investment.
Someone inquired about the potential impact on Hong Kong should the world’s first ETF become secure in the US during a conversation about it. In response, Huang said:
“Probably not, because whether the United States defines Ethereum as a security does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission.”
He clarifies the unique process by which the Securities Regulatory Commission of Hong Kong decides which Bitcoin assets qualify as securities. They also determined which ones are accessible for trading by the general public.
“It will not be affected by different opinions between various departments in the United States, or ultimately their own unilateral definition,” he went on.
Furthermore, he made a point about why Hong Kong, not the US, is setting the global standard for the introduction of Ethereum spot ETFs.
“The regulation of cryptocurrency in the United States has multiple departments speaking out at the same time, or trying to regulate it.”
He said “Hong Kong has already had a clear definition of Ethereum,” and then clarified, “Ethereum is not a security.”
He said that it is one of the two assets that could become available to ordinary investors, along with Bitcoin.
Hong Kong ETFs Amid Ethereum Foundation Scrutiny
The US Securities and Exchange Commission is looking into the Ethereum Foundation to decide if they think Ethereum is like a security.
On April 30, crypto ETFs became available in Hong Kong by China Asset Management, Bosera Asset Management, and Harvest Global Investments. On the Hong Kong Stock Exchange, they trade under the tickers CAM, BOS, and HGI.
On April 15, China Asset Management (Hong Kong) selected OSL Digital Securities as their first partner for virtual asset trading and sub-custody.
Founded in 1998, China Asset Management is a Beijing-based bank that the government owns. It is also among the biggest fund groups in China.
