The Hong Kong Securities and Futures Commission (SFC) has reportedly given approval for three Bitcoin exchange-traded funds (ETFs). The approved ETFs are from Harvest Global Investments, China Asset Management, and a partnership between HashKey and Bosera Asset Management. The Stock Exchange of Hong Kong will require approximately two weeks to complete the listing procedures and related arrangements. The approval of these Bitcoin ETFs in Hong Kong could potentially stimulate a post-halving rally for Bitcoin, according to Herbert Sim, the chief operating officer of crypto exchange Websea. Sim believes that the approval will lead Chinese banks to start buying Bitcoin as well. Meanwhile, the CEO of investment firm VanEck, Jan van Eck, has stated that it is unlikely that the United States Securities and Exchange Commission (SEC) will approve spot Ether ETFs in May. VanEck’s application for a spot Ether ETF is expected to be rejected, along with Cathie Wood’s ARK Invest. Both firms are awaiting final decisions by May 23 and May 24, respectively.
In a recent testimony before the Senate Banking Committee, U.S. Deputy Treasury Secretary Adewale Adeyemo advocated for more enforcement powers for his agency in countering illicit finance, terrorism, and sanctions evasion. Adeyemo proposed three reforms to improve U.S. enforcement efforts against international bad actors using crypto, including the introduction of secondary sanctions targeting “foreign digital asset providers” engaging in illicit finance. Adeyemo emphasized the need for a new secondary sanctions tool since crypto exchanges and money services do not always rely on correspondent accounts, which are subject to existing U.S. sanctions.
Dubai’s crypto landscape is undergoing transformation, but smaller players are facing significant regulatory burdens. Matthew White, CEO of Dubai’s Virtual Asset Regulatory Authority (VARA), unveiled plans to alleviate compliance costs for small crypto entities. White suggested a structure where larger participants could host smaller ones, with the costs of compliance carried by entities with more resources. This approach would allow smaller players to enter the ecosystem, be regulated, and avoid the high costs of compliance.
In Australia, hundreds of investors have lost over 160 million Australian dollars after a group of cryptocurrency mining companies collapsed into liquidation. The Australian Security and Investments Commission (ASIC) has launched civil proceedings against the companies and their directors. The companies, collectively known as NGS companies, allegedly targeted local investors to establish self-managed superannuation funds and then converted the funds into cryptocurrency for investment in blockchain mining packages. ASIC claims that these companies operated without the necessary Australian license and that approximately 450 investors entrusted a total of 62 million AU$ to them.