December 2, 2020

Hong Kong regulator publishes rules for crypto fund managers

Hong Kong regulator publishes rules for crypto fund managers

Hong Kong Securities and Futures Commission (SFC) has issued new rules that must comply all fund managers investing in digital assets.

The new rules will govern financial fund management companies whose portfolio consists of more than 10% digital assets.

The 37-page regulatory document enters intoforce immediately. According to the document, digital assets are classified as a “digital measure of value in the form of tokens”. These digital tokens can in turn act as digital currencies, securities, utility tokens, and asset-backed tokens.

In addition, under the new rules, managersfunds wishing to invest in cryptocurrency must have a minimum capital of 3 million Hong Kong dollars. In addition, digital assets should be traded on a separate account from traditional assets.

According to the materials www.fxstreet.com