The Securities and Futures Commission (SFC), the Hong Kong securities regulator, has recently published official rules that crypto fund executives must follow.
New rules for crypto funds
The new rules, called “Proforma Terms and Conditions for Licensed Corporations, which Manage Portfolios that Invest in Virtual Assets,” state:
“Corporations interested in investing in digital currencies should maintain a minimum liquid capital of HK$3 million (US$383,000).”
It is stated that executives must ensure that they have sufficient technical resources and capital to perform their duties properly.
It is also expected that companies will have to pay particular attention to adhering to and adopting adequate risk management procedures. They also must comply with laws concerning money laundering and terrorism financing.
Interesting in the section: The Coinbase Legal Counsel defends the Cryptocurrency Rating Council
In April this year, the Hong Kong Financial Authorities issued a new Securities Offer (STO).