The Hong Kong regulator has issued requirements for control crypto funds

The Hong Kong securities and futures Commission (SFC) has submitted a document regulating the activities of cryptocurrency Fund managers.

In a document titled “Formal terms and conditions for licensed corporations that manage portfolios and invest in virtual assets,” the SFC defined the rules and requirements for funds that invest in cryptocurrency companies.

Thus, funds must have a liquid capital of at least $380,000. The SFC also advised investment companies to provide sufficient resources to properly perform their duties and manage risks. Equally important is compliance with regulatory requirements in the field of combating money laundering and terrorist financing.

The SFC emphasized the need to keep assets with an independent qualified custodian. At the same time, the Fund must make sure that the client’s assets are separated from the company’s own assets, except in cases when the Fund’s funds are stored in a consolidated client account. Bank accounts must be opened in licensed financial institutions in Hong Kong, or in a Bank approved by the Commission.

In addition, the document describes procedures for storing client data, building hardware and software infrastructure, and controlling the security of key generation, storage, management, and exchange.

Note that in early September, the Hong Kong legacy Trust custodial service launched one of the first pension plans of its kind, under which citizens ‘ pension savings will be stored in digital assets.