This text was initially revealed by 8btc and written by Lylian Teng.
Hong Kong’s Securities and Futures Fee (SFC) has lately launched guidelines and laws for fund managers coping with crypto belongings.
The securities regulator revealed a 37-page doc titled “Proforma Phrases and Circumstances for Licensed Companies which Handle Portfolios that Spend money on Digital Belongings” on October four, 2019. It supplied detailed steering for entities managing portfolios that put money into “digital belongings,” its time period for cryptocurrencies.
In keeping with the doc, digital asset fund managers in Hong Kong ought to always preserve liquid capital at a minimal of three million Hong Kong dollars (roughly $380,000) and its variable required liquid capital. As well as, ample human and technical sources and expertise are required, relying on the quantity of belongings below administration.
Versus mainland China, the place ICOs and exchanges offering cryptocurrency buying and selling have been banned since September 2017, the securities regulator lays out a authorized framework for ICOs.
Making certain Crypto Asset Fund Security in Hong Kong
In an effort to guarantee the protection of fund belongings, the SFC requires the cryptocurrency fund managers entrust these belongings to custodians which can be functionally unbiased from themselves and that the digital asset fund managers guarantee their fund belongings are segregated from their very own belongings.
The detailed steering appears to bolster that the SFC is exhibiting growing openness and understanding towards cryptocurrency funding.
In October 2018, the then-chairman of Hong Kong’s SFC expressed that a complete ban on cryptocurrency was not the proper method as it could not work in right this moment’s digital world when buying and selling can cross worldwide boundaries. Since then the area has been main the world in growing lively measures to maintain the fast-growing cryptocurrency sector in verify.
In November 2018, the SFC issued tips for funds coping with cryptocurrency, which decided that funds that make investments greater than 10 % of the gross asset worth in crypto belongings should be licensed by the SFC.
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