The Hong Kong Securities and Futures Commission (SFC) released a statement today stipulating the regulatory standards that would define the trajectory of virtual assets portfolio managers and fund distributors, according to an announcement on its website.
As per CCN’s report, the regulator had proposed the framework in a research paper published in October 2018.
The reforms became imperative following the leverage inherent in possessing virtual assets via funds and the seeming awareness of investors about the presence of unlicensed trading operators in Hong Kong.
In view of this trend, the SFC is also exploring conceptual frameworks to come up with regulations that will be binding on virtual asset trading platform operators. Securities regulators are on the same page on the investor protection risks posed by virtual assets.