Author: Diana Ngo

The Securities and Futures Commission of Hong Kong (SFC) has issued regulations for fund managers investing in virtual assets, setting requirements for the custody of virtual assets, how to manage counterparty risk, and more. On October 4, 2019, The financial market watchdog announced that a set of rules will be imposed on licensed corporations that manage portfolios investing in virtual assets, such as digital currencies like bitcoin and ether, but also utility tokens, security or asset-backed tokens, as well as other virtual commodities, and crypto-assets. Key takeaways The 37-page regulation, effective immediately, details a series of requirements virtual asset fund…