Hong Kong industry opposes stricter regulation of asset management virtual asset licenses, claiming it may hinder traditional institutions from entering the market
PANews reported on January 20 that the Hong Kong Securities and Futures Professionals Association (HKSFPA) has publicly opposed the regulatory authority's proposal to abolish the "exemption threshold" for virtual asset investments by Type 9 licensed asset management institutions. The association pointed out that this measure would force funds allocating even just 1% to bitcoin to apply for a full virtual asset management license, resulting in disproportionate compliance costs and potentially discouraging traditional asset management institutions from exploring crypto assets. In addition, the association also criticized the proposed requirement that assets be held only through licensed custodians, arguing that it could restrict the operations of Web3 venture capital funds, and called for the introduction of flexible arrangements for self-custody and offshore custody.
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