Cryptocurrencies are being regulated around the world, yet comprehensive regulations are still lacking. While the US has one perspective, the EU has another, and regulatory clarity may not be achieved for a few years. Each country has taken steps on urgent matters for itself. The US, through the SEC, is trying to fit crypto into 100-year-old laws through enforcement rather than regulating it straightforwardly.
Is Ether a Security?
Although the SEC Chairman avoids answering this question in every Congressional hearing, the US securities regulator confirmed with the Ethereum 2.0 operation that it views Ether as a security. Exchange-traded fund issuers in Hong Kong are worried about this process, which could result in regulators classifying Ether as a security.
Zhu Haokang, President of digital asset management firm China Asset Management, and Wayne Huang, President of crypto asset custody firm OSL Digital Securities, addressed these concerns. Regarding how a potential adverse decision in the US could affect Hong Kong, they stated:
“Probably not, because whether the United States classifies Ethereum as a security or not does not affect the independent decision-making process of the Hong Kong Securities Regulatory Commission.”
Hong Kong Embraces Crypto
In terms of economic size, Hong Kong is one of the biggest supporters of crypto. With over $500 billion in investment potential and constructive crypto regulations, they stand in a very different place from the US. Wayne Huang made the following encouraging statements about the future:
“The various departments in the United States have differing views or are trying to regulate cryptocurrency at the same time. Our ETFs will not be affected by their ultimate unilateral definitions. Hong Kong already has a clear definition of Ethereum and clearly it is not a security/investment contract.”
A few hours ago, Hong Kong launched spot Ethereum ETFs, a first in the world. As this article was being prepared, BTC was trading at $63,650 while the ETH price was at $3,181.
