The Hong Kong Securities and Futures Commission recently issued regulations that set strict conditions for management companies, investment strategies and custodians of public fund products that hold more than 10% of virtual assets. The Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority also issued a notice on intermediaries' virtual asset-related activities, preparing to accept fund approval applications including virtual asset spot ETFs. In addition, companies that manage virtual asset funds must have a good compliance record and relevant experience. Virtual asset funds can only invest in assets on licensed platforms in Hong Kong and must follow strict investment strategies and custody requirements. Sales agencies must also conduct virtual asset knowledge assessments on customers.
