Hong Kong industry association opposes proposed definition and scope of virtual asset management

Foresight News reported that the Hong Kong Securities and Investment Professionals Association commented on the question "Do you agree with the proposed definition and scope of virtual asset management services?" stating, "We do not agree with the removal of the minimum threshold. The proposal removes the current '10% of total asset value' threshold applicable to Type 9 managers. This means that even if a traditional equity portfolio manager allocates 1% of a fund to bitcoin for diversification, a full virtual asset management license would be required. This 'all or nothing' approach is disproportionate, will deter traditional asset managers from exploring this asset class, and contradicts the government's goal of integrating Web3 into traditional finance. It imposes a heavy compliance burden for negligible risk exposure."