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Hong Kong Doubles Down on Crypto Regulation With Staff Hires

Hong Kong’s Securities and Futures Commission (SFC) is looking to increase its headcount, with more than half the added roles dedicated to regulating crypto, according to a two-year budget plan presented to the Legislative Council, the region’s legislative body known as Legco.
Despite freezing its headcount in three of the five financial years since 2020, it is looking to add another 15 people, eight of whom will be dedicated to crypto as the regulator furthers its commitment to regulate the industry.
«Eight of the proposed new headcount is for enhancing the staffing support for virtual asset regulatory regimes, market surveillance and enforcement investigations,» the budget presented on Monday said.
The growth comes as Hong Kong’s administration faces a budget deficit that is forecast to reach $HK100 million ($13 million) this year and is likely to announce budget cuts later this month, the South China Morning Post reported.
In June 2023, Hong Kong initiated a new licensing regime for crypto companies. Last year it said it would also license stablecoin providers. The country’s stablecoin bill is still being discussed.
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ARK Invest Sold $95M of Coinbase Shares After COIN’s Surge to Record Highs

ARK Invest offloaded nearly $43.8 million worth of shares of cryptocurrency exchange Coinbase (COIN) on Monday.
The sale follows similar moves last week for a total of 270,984 COIN shares offloaded in the last three trading days, worth just under $95 million based on Monday’s closing price of $350.49.
Coinbase shares surged to a record high of over $380 on June 26, which necessitated the sales from ARK. Cathie Wood’s investment managing firm has a target weighing of its exchange-traded funds (ETFs), whereby no individual holding exceeds 10% of its total value.
This leads to a trend of ARK selling large numbers of particular shares when their prices rally and acquiring them when they dip.
ARK holds COIN in three of its ETFs: Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF).
Read More: ARK Invest Continues to Dump Circle Shares, Buys Robinhood and Coinbase
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Germany’s Public Savings Bank Network Sparkassen to Offer Bitcoin Trading to Clients: Report

Sparkassen, a group of savings banks operating across Germany since the first established in Hamburg in 1778, has decided to introduce cryptocurrency trading services for their customers, according to a report by Bloomberg.
The group will enable private clients to trade cryptocurrencies, including bitcoin (BTC) and ether (ETH), directly through their mobile banking apps via the group’s securities platform, DekaBank, with the facility expected to go live by summer 2026.
The news comes months after DekaBank introduced crypto trading and custody services for institutional clients and represents the growing acceptance of digital assets within traditional banking systems.
The German Savings Bank Association (DSGV) reportedly backed the decision to enable crypto trading, citing growing demand and the prevalence of legal framework under the so-called European MiCAR Regulation.
Earlier this year, Matthias Diessl, president of the Savings Banks in Bavaria, said in a Bloomberg interview that savings banks should offer customers the opportunity to trade cryptocurrencies, deviating from a three-year-old committee recommendation cautioning against enabling crypto trading.
That said, despite warming up to the idea, DGSV still considers digital assets as highly speculative investments, according to Bloomberg.
Read more: Boerse Stuttgart Partners With DekaBank to Offer Crypto Trading for Institutional Clients
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Bitcoin ETP With DeFi Yield Goes Live in Europe

A bitcoin (BTC) exchange-traded product (ETP) that generates yield from decentralized finance (DeFi) markets has debuted on Tuesday, in what issuer Fineqia calls a first of its kind.
The Fineqia Bitcoin Yield ETP (YBTC), listed on the Vienna Stock Exchange, targets a 6% annual yield by deploying investor capital into DeFi strategies. It is issued by Fineqia’s Liechtenstein-based subsidiary and advised by Psalion Yield, a digital asset investment firm focused on blockchain-based yield.
Unlike existing crypto yield ETPs that rely on derivatives or structured notes, YBTC maintains one-to-one exposure to bitcoin while generating returns directly from DeFi protocols.
“It allows investors to earn more BTC while they hold it, combining long-term conviction with compounding returns, all inside a regulated wrapper,” said Fineqia CEO, Bundeep Singh Rangar.
The ETP also supports in-kind transfers, meaning that digital asset holders can contribute BTC directly to the product without the need to first convert into cash incurring a taxable event.
YBTC arrives at a time when investor interest in crypto-focused investments is growing. These investment products has brought digital assets closer to traditional investors, allowing them to invest in digital assets in a familiar way through brokerage accounts without the need of crypto wallets and blockchain transactions.
Bitcoin exchange-traded products enjoyed rapid growth over the past year and have gobbled up $150 billion of assets, Fineqia said.
Read more: BlackRock to List Bitcoin ETP in Europe in First Crypto Foray Outside U.S.
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