Today the Hong Kong Securities and Futures Commission (SFC) issued a
statement that broadens the scope of organizations that fall under its regulatory net. Portfolio managers and distributors of digital asset funds are now part of its remit. This is the case even if the digital asset is not considered a security or future. Additionally, it outlined plans to regulate exchanges.
The SFC referred to “virtual assets” which it defined as covering cryptocurrencies, crypto-assets and digital tokens. However, the SFC’s remit is expanded because it usually only provides oversight for “securities” or “futures contracts”. The regulator states that this approach leaves many investors unprotected.
Hence as an example, the following type of portfolio managers will now be subject to SFC supervision: “Firms managing funds which solely invest in virtual assets that do not constitute “securities” or “futures contracts” and distribute the same in Hong Kong.”
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