Hong Kong industry body opposes stricter crypto licensing rules for asset managers
HKSFPA opposes proposed Hong Kong rules removing the crypto investment threshold for Type 9 asset managers.Summary
The Hong Kong Securities and Futures Professionals Association (HKSFPA) has objected to key aspects of proposed digital asset management regulations, warning they could deter traditional asset managers from crypto exposure. Specifically, HKSFPA opposes removing the existing "de minimis" threshold for Type 9 licensed managers, which currently allows less than 10% crypto investment without a separate license uplift. The proposed change would require a full virtual asset management license even for minimal exposure, which the group deems "disproportionate" due to high compliance costs versus limited risk. Furthermore, HKSFPA criticized proposed custody rules mandating SFC-licensed custodians, arguing this is impractical for Web3-focused VC funds dealing with early-stage tokens not yet supported locally. The association did, however, support allowing self-custody or the use of qualified offshore custodians for professional investors, as Hong Kong pushes to become a crypto hub.
(Source：The Block)