Hong Kong SFC issues regulations for crypto fund managers

Hong Kong SFC issues regulations for crypto fund managers

On 4 October, the Hong Kong Securities and Futures Commission (SFC) released a detailed document, outlining new regulations for crypto fund managers.

One of the main requirements introduced with this new regulatory filing is that fund managers dealing with virtual assets will have to maintain a constant liquid capital of a minimum HK$ 3 million.

Regulations for crypto fund managers

The minimum liquid capital is not the only new requirement crypto fund managers will have to comply with. 

According to the new set of regulations, fund managers will also be forced to appoint a dedicated custodian, who will be able to function independently, to ensure the safety and security of crypto assets.

Probably the most significant change introduced with the new regulations relates to asset separation. The SFC has demanded that crypto fund managers clearly distinguish between their own assets and the assets of company customers.

Hong Kong and crypto

Hong Kong has become one of the best-regulated states globally when it comes to cryptocurrencies and digital assets. 

While the strict regulations may seem like a tough pill to swallow for crypto enthusiasts and businesspeople in Hong Kong, this is one of the first regions to actually successfully regulate cryptocurrency use and investments. 

To make society follow these regulations, the SFC and authorities are looking at fund managers under a microscope and enforcing huge fines on the ones, who are not acting according to the law. 

The strict regulatory environment in Hong Kong has made a lot of investors turn away from the area but has also attracted others, who are looking for the security regulation offers.

Tina Yordanova

Tina Yordanova

Back from her stint with European Central Bank, Morgan Stanley, Barclays, Societe Generale, Hilton Hotels, and Aviva International, Tina rejoins Cryptopolitan with a deeper insight regarding the financial world, blockchain enterprises and institutions and practices involved in it. She is eager to share her rounded perspective honed from the biggest media analysis companies on the Balkans.

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