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ARTICLE · 15 NOVEMBER 2018

Hong Kong SFC Unveils New Regulatory Framework For Virtual Assets

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This is expected to solve the long-standing problems for these operators to open bank accounts for general banking transactions in Hong Kong.

Hong KongTechnology
Daniel Tang
Daniel Tang
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The Hong Kong Securities and Futures Commission ('SFC') announced a new set of rules on 1 November 2018, which will bring portfolio managers and distributors of funds dealing with virtual assets under its regulatory purview. The new set of rules seek to impose further regulatory requirements on such licensed firms that the SFC currently regulates. Virtual assets are digital representations of value, examples of such include "cryptocurrencies", "crypto assets" and "digital tokens'. Firstly, all licensed portfolio managers and funds that invest more than 10% of their portfolios in virtual assets will be required to obtain a license and only qualified institutional investors, are allowed to invest in virtual asset portfolios. This will apply regardless of whether these virtual assets fall under the definition of "securities" or "future contracts".

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