The Hong Kong Securities and Futures Commission (SFC) has released guidelines on its official website for fund companies that deal with virtual money or crypocurrency.
Hong Kong SFC Cryptocurrency Asset Guidelines
The SFC issued “Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invests in Virtual Assets” last week. It stated that cryptocurrency fund managers must maintain at least 3 million Hong Kong dollar in floating capital at all times.
In addition, cryptocurrency fund managers must comply with the Anti-money laundering (AML) and anti-terrorism funding (CFT) policies. As well as having sufficient human and technical resources to perform their duties appropriately.
Also the Securities and Futures Commission demanded that if a fund receives a legal call, it should set up one or more separate bank accounts (accredited financial institutions in Hong Kong) to hold the funds of its customers.
The guide lines also stressed that cryptocurrency fund managers should have independent asset managers for their jobs. And they should manage cryptocurrency fund assets separately from corporate and other assets of customers.
As SFC announced its implementation guidelines for cryptocurrency fund companies, related industries seem to be cheering.
“It is encouraging that the Hong Kong financial authorities announced the implementation guidelines for cryptocurrency funds,” an official said. “As the Financial Supervisory Service (FATF) has asked member countries to abide by guidelines regarding cryptocurrency handling companies by June next year, financial authorities are moving.”
Massive Bitcoin trading across the week
Meanwhile, Hong Kong got the world’s crypto community in chaos after the massive amount of trading happened in one week. There were 173 Bitcoin trading transactions in the country within 7 days. Recording more than 12 million Hongkong Dollars-worth of transactions.
Some speculated that it has a political motive in relation with the protests going on in the country. But with Bitcoin price on the low, no one can never know the exact reason.
