Hong Kong regulator issues requirements for cryptocurrency fund managers

Hong Kong regulator issues requirements for cryptocurrency fund managers

The Hong Kong Securities and Futures Commission (SFC) has introduced a document regulating the activities of cryptocurrency fund managers.

In a document entitled “Formal Terms and Conditions for Licensed Corporations Managing Portfolios and Investing in Virtual Assets”, the SFC defined the rules and introduced the requirements for funds investing in cryptocurrency companies.

Thus, funds should have liquid capital in the amount of at least $ 380,000. The SFC also advised investment companies to provide sufficient resources for the proper performance of their duties and risk management. Equally important is compliance with regulatory requirements in the area of ​​combating money laundering and terrorist financing.

The SFC emphasized the need to keep assets with an independent qualified custodian. At the same time, the fund must make sure that the assets of clients are separated from the company’s own assets, except when the funds of the fund are stored in a consolidated client account. Bank accounts must be opened with licensed financial institutions in Hong Kong, or with a bank approved by the Commission.

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In addition, the document describes the procedures for ensuring the storage of client data, the construction of hardware and software infrastructure, as well as the security control of key generation, storage, management and exchange.

Note that in early September, the Hong Kong custodian service Legacy Trust launched one of the first of its kind pension plans, under which citizens’ pension savings will be stored in digital assets.


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