Hong Kong's securities industry group, HKSFPA, opposes regulatory proposals to eliminate the 'de minimis' 10% crypto allocation rule for asset managers, arguing it would impose disproportionate compliance costs. The group also challenges the mandate requiring virtual asset managers to use only SFC-licensed custodians, citing impracticality for early-stage and Web3 investments. However, HKSFPA supports self-custody and use of qualified overseas custodians for professional investors, amid ongoing regulatory consultations.