The call for proper regulation for the global cryptocurrency sector, seems to slowly be yielding fruits as more than a few regions are slowly responding. Per an official announcement, the Hong Kong Securities and Futures Commission (SFC), has published regulatory framework intended to govern investment in virtual assets by the country’s fund managers.
Published on the 4th of October, the document takes immediate effect and explains that all virtual assets as referred to, includes all utility tokes, cryptocurrencies, securities and other “digital representations of value which may be in the form of digital tokens.”
The document, titled “Proforma Terms and Conditions for Licensed Corporations which Mange Portfolios that Invest in Virtual Assets” is 37 pages long and states specifically that all fund managers who deal with virtual assets, are expected to have a minimum liquid capital of 3 million Hong Kong dollars, roughly $383,000.The SFC also suggests that managers should have a large enough and effective team regarding both human and technical provisions, to ensure that all of its duties are properly carried out, all compliance regulations are followed strictly and also for efficient risk management reasons. Fund manager are also expected to follow Anti-Money Laundering (AML) policies.
Furthermore, the fund managers are required to employ a third party, independent custodian who must ensure that user funds and those for the fund manager, are kept separately.
Previously, the Hong Kong government has suggested that the use of crypto foes not negatively impact its financial system.
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