Though Hong Kong’s Securities and Futures Commission (SFC) introduced a license for the crypto fund managers last year, the regulator is reluctant to issue it.
Even though last year the Securities and Futures Commissions of Hong Kong introduced a license for crypto fund managers, it has remained quite selective in its screening process. A rather small group of crypto firms have yet to be given the green light by the authorities in Hong Kong.
Exactly which crypto funds have been licensed is kept secret due to discretion, however, experts from the industry have confirmed that the bar is set very high for those eager to manage digital currencies-related funds legally in the country.
The license in question was put forth last October by the SEC in an attempt to gain control and legitimize the operation of growing crypto funds in the country.
According to a partner at the law firm Simmons & Simmons, ““Last year there was a lot of excitement but since then we haven’t seen much activity. Not many new managers in this area have the background, experience or support to mount such an undertaking, and this has meant that many applications never even get started.”