Hong Kong’s SEC-like Commission Releases New Regulations On Asset Management Of Crypto’s


Hong Kong securities authority sets out the first-ever cryptocurrency regulations as asset managers and portfolios invested in virtual assets targeted. The new regulations come at a time the island country is witnessing increased levels of Bitcoin trading as pressure from mainland China intensifies.

New Regulation Dawn for Crypto Asset Management

In an official published report released on October 5, the Securities and Futures Commission (SFC), provided guidelines to asset managers with portfolios invested in virtual assets. The document titled, “Pro forma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets”, is set to lay the foundation for regulated crypto investment and trading for both retail and institutional traders.

The 37 page published report offers a clear path on trading crypto assets in the country as the agency looks forward to a much more regulated crypto environment. In the past few months, the SFC has issued a number of warnings against the unregulated trading of cryptocurrencies and closed down some operators. However, the commission looks to promote regulation of the industry without stifling the development potential of the field. The latest “terms and conditions” are a step towards that goal.

Pressure from Mainland China

For the better part of the year, Hong Kong has been under massive waves of protests as the government of mainland China continues to pressure the island state. The protests have closely been increasingly matched to the increase in demand for virtual assets in the region. However, this may not be the cause of the latest regulations by the SFC as one crypto research specialist explains.

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.”

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