The Securities and Exchange Commission (SEC) in the United States has once again delayed its decision on the listing of spot Bitcoin (BTC) exchange-traded funds (ETFs), despite calls from several representatives to immediately approve them. Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres had urged the SEC to approve the ETFs, but the agency has pushed back its decision. The SEC also delayed its decision on spot Ether (ETH) ETFs from VanEck, ARK 21Shares, and GlobalX, as well as on spot Bitcoin ETF applications from Invesco, Bitwise, and Valkyrie. The delays came earlier than anticipated, possibly due to concerns about a government shutdown that could disrupt financial regulators and federal agencies.
Bitwise Asset Management responded to the delay of its spot Bitcoin ETF with an amended application, addressing the SEC’s objections to the product. The amended application aimed to engage with the SEC’s concerns about the “mixed” or “inconclusive” academic record on the lead-lag relationship between BTC futures and spot markets.
In other news, the Shanghai No.2 Intermediate People’s Court in China has recognized Bitcoin as a unique and non-replicable digital asset. The court acknowledged the scarcity and inherent value of Bitcoin and described it as a distinct and unique internet technology product. The court report highlighted Bitcoin’s key currency features, such as scalability, ease of circulation, storage, and payment.
Meanwhile, Taiwan’s Financial Supervisory Commission (FSC) has formulated guidelines for regulating the country’s cryptocurrency market. The guidelines require virtual asset service providers (VASPs) operating in Taiwan to follow industry-wide rules such as separating exchange treasury assets from customer assets and implementing mechanisms for reviewing the listing and delisting of virtual assets. The FSC also stated that foreign VASPs must obtain necessary approvals from the regulator before providing services in Taiwan.
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In Hong Kong, the Securities and Futures Commission (SFC) announced that it will publish a comprehensive list of all licensed, deemed licensed, closing down, and application-pending virtual asset trading platforms (VATPs). This list aims to help the public identify potentially unregulated VATPs operating in Hong Kong. The SFC also plans to maintain a dedicated list of “suspicious VATPs” on its website to further raise awareness among the public. These actions come in response to the recent JPEX crypto exchange scandal, described as one of the worst cases of financial fraud in the region. JPEX allegedly promoted its services to Hong Kong residents without obtaining a license.
Despite the delays in approving spot Bitcoin ETFs in the US, the recognition of Bitcoin’s uniqueness and non-replicable nature by the Shanghai court and the regulatory efforts in Taiwan and Hong Kong reflect an increasing acceptance and understanding of cryptocurrencies in various jurisdictions. While the SEC’s decision on the ETFs remains pending, these developments demonstrate a growing recognition of the potential of cryptocurrencies as valuable assets and the need for regulations to protect investors and ensure market integrity. As the cryptocurrency industry continues to evolve, it is essential for regulators worldwide to strike a balance between fostering innovation and safeguarding the interests of market participants.
