Hong Kong Association Opposes New Crypto Asset Rules

The Hong Kong Securities and Futures Professionals Association (HKSFPA) has expressed opposition to proposed changes in virtual asset management regulations. The association argues that removing the current exemption for up to 10% crypto asset allocation under the Type 9 (asset management) license would require firms to obtain a full virtual asset management license even for a 1% Bitcoin allocation. This, they claim, would lead to compliance costs that are disproportionate to the risk exposure, potentially deterring traditional asset management firms from exploring crypto assets.