The securities regulator of <a href="https://www.cryptoknowmics.com/crypto/hong-kong-department-store-accepts-bitcoin-as-conflicts-escalate/">Hong Kong</a>, Securities and Futures Commission (SFC) officially <a href="https://www.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=19EC62">released</a> the new set of regulations for crypto fund managers on its website.

As per the publication, the document dubbed "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets," holds terms and conditions that govern licensed corporations that manage portfolios investing in virtual assets.

Specifically, this imposes on licensed corporations which manage or intends to manage portfolios with "(i) a stated investment objective to invest in virtual assets; or (ii) an intention to invest 10% or more of the gross asset value of the portfolio in virtual assets (collectively referred to as "Virtual Asset Fund Managers")," SFC stated.
<h2>Rules for Crypto Fund Managers</h2>
Crypto fund managers in Hong Kong are to maintain liquid capital of about 3 million Hong Kong dollars ($383,000) at a minimum and its variable required liquid capital, according to the document.

Going with the T&amp;Cs, the regulator wants fund managers to adequate human and technical resources to ensure proper performance of duties. This will also facilitate in the adoption risk management and compliance policies, Combating the Financing of Terrorism and Anti-Money Laundering.

Unless fund assets are being kept in an omnibus client account, the regulator had urged crypto fund managers to onboard an active independent custodian, as another safety technique for fund assets. SFC heighten on the necessity to sperate assets, including the virtual asset fund manager's assets, its fund assets and that of clients.

According to the regulator, every fiat currency the manager receives on behalf of the fund should be kept in one or more separate bank accounts set up for holding clients' money. 

The bank accounts for clients' money should be established and maintained with an authorized financial institution in the country. This includes any bank in a jurisdiction agreed to by the regulator.

The virtual asset fund manager should also evaluate the features of the diverse custodial arrangement, such as storage, management and transaction, hardware and software infrastructure, security controls over a critical generation, and the process of handling blockchain forks.

Hong Kong Securities Regulator Releases Crypto Fund Managers Regulation

Ibiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

Hong Kong Securities Regulator Releases Crypto Fund Managers Regulation

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