The financial regulator of Hong Kong, the Securities and Futures Commission (SFC) has published a set of regulations for crypto fund managers, Cointelegraph reports on October 7th.
The document, entitled "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets” is 37 pages long and provides the terms and conditions for investing in virtual assets. It also demands that virtual asset fund managers maintain liquid capital in the minimum amount of 3M Hong Kong dollars (cca USD380k) and are advised to have sufficient manpower and technical resources to ensure smooth operation and implementation of risk management policies.
As we've seen from the recent wave of international calls for more regulation of the crypto space, the current state of affairs, not dissimilar to the wild west of financial markets, cannot continue for long. More regulatory frameworks such as the newly published Hong Kong one can be expected, clearly defining both rules of conduct and obligations for bodies facilitating the trade of cryptocurrency. While it might have a short-term negative effect, in the long run, more concise and clear regulation can only benefit the space and thus Hong Kong's latest move can be greeted by the wider crypto community.