07 October 2019 12:12, UTC

Hong Kong Securities and Futures Commission (SFC) has issued rules for cryptocurrency fund managers. The regulatory circular is published on the SFC website on October 4.

In a 37-page document, the SFC introduced terms and conditions for corporations that manage portfolios investing in virtual assets. According to the document, Hong Kong virtual asset fund managers must always maintain liquid capital of at least 3 million HK dollars (383,000 US dollars) as well as its variable required liquid capital.

To ensure the safety of the fund’s assets, the SFC requires crypto fund managers to appoint a functionally independent custodian. The regulator emphasized that the fund manager should ensure that the assets of the fund are separated from its own assets, as well as the assets of other customers, if the assets of the fund are not stored in an omnibus client account. The document states that bank accounts must be created and maintained at an authorized financial institution in Hong Kong or a bank in a jurisdiction approved by the SFC.

Hong Kong has established itself as one of the most progressive jurisdictions for cryptocurrencies and blockchain: the country is one of the leading countries in the number of registered digital currency exchanges. Earlier this year, the SFC had already released the STO Guidelines, intending to clarify the legal and regulatory requirements for the market.

Image courtesy of ICO Now

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