HKSFC: Public fund products with virtual assets accounting for more than 10% must submit an application by the management institution

The Securities and Futures Commission of Hong Kong recently issued regulations setting strict conditions for fund management companies, investment strategies, and custodian institutions holding more than 10% of virtual assets in public funds. The Securities and Futures Commission and the Monetary Authority also issued notices regarding intermediary activities related to virtual assets, preparing to accept fund recognition applications including virtual asset spot ETFs.

In addition, companies managing virtual asset funds must have a good compliance record and relevant experience. Virtual asset funds can only invest in assets on licensed platforms in Hong Kong and must adhere to strict investment strategies and custody requirements. Sales agencies must also conduct virtual asset knowledge assessments for clients.