- Buy Crypto
- Markets
- Futures
- Spot
- Copy Trade
Earn- More
Hong Kong's Crypto Asset Management New Regulations Face Industry Resistance, Association Warns One-Size-Fits-All Licensing Requirement May Stifle Innovation
BlockBeats News, January 20th - The Hong Kong securities industry group has raised concerns about the city's proposed digital asset management regulatory framework, warning that the related reforms could hinder traditional asset management institutions from entering the cryptocurrency space.
The Hong Kong Securities and Futures Professional Association expressed opposition in a submission to the regulators on Tuesday to a proposed regulatory adjustment that would eliminate the existing "minimum exemption threshold" for Type 9 asset managers. Under the current framework, institutions holding a Type 9 license (covering discretionary portfolio management and asset management businesses) that allocate less than 10% of the total fund assets to crypto assets only need to report to the regulators without the need to apply for an additional license upgrade.
The Hong Kong Securities and Futures Professional Association pointed out that the proposed reform would eliminate this threshold, meaning that even a 1% allocation to Bitcoin would require a full virtual asset management license. The industry group stated that this "all or nothing" regulatory approach lacks a proportionality principle, believing that even in cases of limited exposure to risk, substantial compliance costs would still be incurred, potentially hindering traditional management institutions from exploring the cryptocurrency asset class.
This industry backlash is directed at a regulatory framework that is already in the fast lane. Last December, after launching a public consultation in June, Hong Kong authorities released a consultation summary report on the related reform proposals. The Hong Kong Treasury and the Securities and Futures Commission have conducted further consultations on introducing a supplementary licensing system for cryptocurrency trading, advisory, and management services.
You may also like
Bitcoin Surges Past Key Levels—Potential Liquidations Loom
Key Takeaways Bitcoin could trigger $1.71 billion in short liquidation on major CEXs if it surpasses $92,262. Conversely,…
Bitcoin Faces Rare Fourth Consecutive Monthly Decline
Key Takeaways Bitcoin is on the brink of its fourth consecutive monthly decline, a situation unseen since the…
Penguin Token Sells Off Amid Market Fluctuations
Key Takeaways A significant PENGUIN token holder has started liquidating their holdings, resulting in $40,000 worth of tokens…
Fed’s January Rate Decision and Bitcoin’s Outlook
Key Takeaways The Federal Reserve is anticipated to announce its first interest rate decision for 2026, with market…
Cathie Wood Boosts Investment in Cryptocurrency Stocks
Key Takeaways Cathie Wood’s ARK Invest has significantly increased its investment in Coinbase, Circle, and Bullish to the…
USD Weakens as DXY Falls Below 97, Boosting Bitcoin Prospects
Key Takeaways The US Dollar Index (DXY) dropped below 97, reaching its lowest level since September of the…
Global Risks Influence Bitcoin Fluctuations: QCP Asia’s Insight
Key Takeaways Persistent macroeconomic uncertainties cause global markets to retreat into risk-off mode. Japanese bond yields surge to…
Digital Asset Fund Outflows Lead to Market Volatility
Key Takeaways Digital asset funds experienced net outflows of $1.73 billion last week, the largest since mid-November last…
Bitcoin Losses Reach $4.5 Billion – Highest in Three Years
Key Takeaways Bitcoin has recorded a realized loss of $4.5 billion, marking the highest level in three years.…
Bitcoin Movement Highlights Prominent Anonymous Transfers
Key Takeaways A significant movement involving 200.48 BTC, valued at approximately $17.6 million, was observed, transferring funds between…
Enso’s Recent Liquidation Sparks Market Volatility
Key Takeaways Enso experienced a dramatic $11.67 million in liquidations, with a significant 70.7% involving short positions, indicating…
Cryptocurrency Market Experiences $766 Million in Liquidations Over 24 Hours
Key Takeaways The last 24 hours saw global crypto liquidations reaching $766 million, with long positions counting for…
Solana Staking Surges to Record High Amid Price Challenges
Key Takeaways Solana’s staking ratio has reached an all-time high of 70%, indicating strong confidence from long-term holders.…
Bitcoin Price Falls Amid Government Shutdown Concerns
Key Takeaways Bitcoin’s price has dropped below $88,000 due to heightened fears of a U.S. government shutdown. Market…
Crypto Analyst Warns of Bitcoin’s Critical Support Test
Key Takeaways Bitcoin’s price recently broke below a significant ascending channel, raising market fears. Bitcoin lost the crucial…
CME Gap Highlights Bitcoin’s Volatility and Market Dynamics
Key Takeaways Bitcoin’s price experienced a significant drop at the start of the week, creating a notable $2,900…
Justin Sun Boosts River Token with $8 Million Investment
Key Takeaways Justin Sun has invested $8 million into River Protocol, significantly impacting the token’s performance. Following the…
U.S. Government Shutdown Threat Impacts Bitcoin and Crypto Markets
Key Takeaways The risk of a U.S. government shutdown has surged, with predicted odds now approaching 80% as…
Bitcoin Surges Past Key Levels—Potential Liquidations Loom
Key Takeaways Bitcoin could trigger $1.71 billion in short liquidation on major CEXs if it surpasses $92,262. Conversely,…
Bitcoin Faces Rare Fourth Consecutive Monthly Decline
Key Takeaways Bitcoin is on the brink of its fourth consecutive monthly decline, a situation unseen since the…
Penguin Token Sells Off Amid Market Fluctuations
Key Takeaways A significant PENGUIN token holder has started liquidating their holdings, resulting in $40,000 worth of tokens…
Fed’s January Rate Decision and Bitcoin’s Outlook
Key Takeaways The Federal Reserve is anticipated to announce its first interest rate decision for 2026, with market…
Cathie Wood Boosts Investment in Cryptocurrency Stocks
Key Takeaways Cathie Wood’s ARK Invest has significantly increased its investment in Coinbase, Circle, and Bullish to the…
USD Weakens as DXY Falls Below 97, Boosting Bitcoin Prospects
Key Takeaways The US Dollar Index (DXY) dropped below 97, reaching its lowest level since September of the…
App