Securities and Futures Commission (SFC), the securities regulator of Hong Kong has officially released regulations for crypto fund managers. On Oct. 4. SFC published the regulatory circular on its official site.
Regulations for Crypto Fund Managers
The SFC provided the terms and conditions for managing the portfolios that invest in virtual assets in a 37-page document titled “Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets”.
Virtual asset fund managers in Hong Kong should always maintain a minimum liquid capital of 3 million Hong Kong dollars ($383,000) and its variable required liquid capital.
‘The SFC advised managers to have sufficient human and technical resources for the proper performance of duties as well as to adopt risk management and compliance policies, as well as policies for Anti-Money Laundering and Combating the Financing of Terrorism.’
Pressure from China
Hong Kong has been under massive protests due to the increase in demand for virtual assets in the region. The pressure continues as the government of China continues to pressure the island state.
Although, a crypto specialist clarifies that the latest regulations under SFC did not result because of it, even though the new regulations do come when the country is witnessing increased levels of Bitcoin trading as pressure from mainland China intensifies.
Speaking on the new regulations, Joyce Yang, the founder, and CEO of Global Coin Research, an analytical firm invested in Asian crypto market said:
“This ‘terms and conditions’ document seems to reinforce that the SFC is showing increasing understanding of the intricacies of cryptocurrency funds. They’re being transparent with their thoughts around this space, and setting guidelines that should facilitate more funding of startups in the region.”
Source: Cointelegraph.com | bitcoinexchangeguide.com