According to different reports by Tencent News and Bloomberg, Harvest Global Investments, a significant asset management firm in China, has applied for a spot-bitcoin exchange-traded fund (ETF) with Hong Kong’s Securities and Futures Commission (SFC) and is in talks with regulators regarding the city’s stablecoin sandbox.
Regulators in Hong Kong said in December 2023 that they were prepared to take applications for spot cryptocurrency exchange-traded funds (ETFs), less than two weeks after almost a dozen applicants were approved for such products in the United States.According to a Bloomberg story earlier this month, Hong Kong-based Venture Smart Financial Holdings has also stated that it will submit an application for a spot bitcoin ETF and anticipates opening for business in the first quarter.
According to Bloomberg, which cited persons familiar with the situation, Venture Smart Financial, Harvest, and RD Technologies are some of the organizations reportedly in talks with the Hong Kong Monetary Authority (HKMA) regarding the proposed stablecoin sandbox.
“The sandbox arrangement is intended for fiat-reference stablecoin (FRS) issuers who have a genuine interest in and a reasonable plan on issuing FRS in Hong Kong,” an HKMA spokesperson said in an email. “The HKMA is preparing for the launch of the sandbox and will announce relevant details in due course.”
When CoinDesk asked the HKMA, the central bank involved in the region’s stablecoin initiatives, for comment, they did not answer right away.By the end of February, the Hong Kong regulators would like to hear comments on their published ideas for a licensing scheme that would oversee stablecoin issuers.