Hong Kong’s Securities and Futures Commission's
(SFC) decision to impose licensing conditions on firms that
manage portfolios investing in virtual assets is a signal it is
clamping down on excesses in the sector. The new rules apply
irrespective of whether the underlying assets meet the
definition of a security or a futures contract.
A new sandbox approach is also being tested on those virtual
assets exchanges and platform operators that agree to it as the
regulator explores potential future regulation in the
SFC chief executive Ashley Alder highlighted the voluntary
approach, and said the measures allow the regulation of virtual
asset funds so that investor interests are protected either at
the fund management level, the distribution level, or both.
According to Wayne Trench, chief executive of digital asset
brokerage OSL, the new proposed regulatory regime serves as
another vote of confidence in terms of legitimacy for