logo

Hong Kong's Crypto Asset Management New Regulations Face Industry Resistance, Association Warns One-Size-Fits-All Licensing Requirement May Stifle Innovation

By: theblockbeats.news|2026/01/20 19:00:26
0
Share
copy

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.

-- Price

--

You may also like

Houthi Deadline Countdown Begins | Rewire News Morning Brief

Trump's 48-Hour Ultimatum was issued on Saturday and expires on Monday night

Middle East Conflict Escalation and Rate Hike Expectation Trigger Worst Gold Sell-Off in 43 Years

The key reasons for the sharp decline include heightened oil prices due to Middle East conflict, suppressed interest rate cut expectations, and intensified selling pressure triggered by tightening USD liquidity.

The Largest Oil Reserve Release in History: Why Is the Oil Price Still Above 100?

4 billion barrels per day production, only covering 17% of the gap

AI Agent Can't Kill SaaS

The true moat is the singularity of data

This viral Beijing high school teacher, Jiang Xueqin, predicted America's downfall in advance

Jiang Xueqin's latest viewpoint in an interview with Carlson: The era of global cheap energy is coming to an end.

Interview with Bill, Head of Bitget AI: In the AI Trading Era, How Far Are We from "Earning While Lying Down"?

Bitget launches a three-tier AI product: GetAgent (Chatbot Assistant), Agent Hub (Developer Tool), GetClaw (One-Click Product), covering users from geeks to newbies.

Popular coins

Latest Crypto News

09:42

Data: Brother Ma Ji's ETH long position has been completely liquidated again, with a total loss exceeding 30.35 million USD

According to Onchain Lens monitoring, Machi Big Brother's (@machibigbrother) ETH 25x leveraged long position was completely liquidated again, shortly after which he opened a new ETH 25x leveraged long position.Currently, his wallet balance is only $32,000, and the total loss has exceeded $30.35 mill...
09:42

Fidelity calls on the U.S. SEC to establish a new framework allowing brokers to trade crypto assets through ATS

Fidelity, in a letter to the SEC, suggested establishing a regulatory framework that allows broker-dealers to trade crypto assets through alternative trading systems (ATS).The proposal aims to promote the inclusion of crypto asset trading into the existing financial system, enhancing market complian...
09:42

An executive from the Bank for International Settlements who is skeptical about stablecoins will become the governor of the Bank of Korea

South Korean President Lee Jae-myung nominated Shin Hung-song, the head of the Monetary and Economic Department of the Bank for International Settlements (BIS), to serve as the governor of the Bank of Korea. Shin Hung-song stated last year that the issuance of a Korean won stablecoin is "an effectiv...
09:42

Analysis: Ethereum is at a critical moment of success or failure in a high-risk balancing strategy

According to CoinDesk analysis, as the pressures from scalability challenges, quantum technology, and artificial intelligence continue to grow, Ethereum is at a critical juncture in high-risk balancing strategies. In the first three months of 2026, the Ethereum ecosystem faces multiple structural pr...
09:42

Data: Sky Alliance has opened a 20x leveraged long position in gold and is gradually closing its SP500 short position

According to Onchain Lens monitoring, Sky founder Rune (@RuneKek) opened a new long position in gold during the decline in gold prices, with a leverage of 20 times. Meanwhile, Rune is closing his SP500 short position and currently still holds TWAP buy and sell orders.
Read more
Community
iconiconiconiconiconiconicon

Customer Support Bot：@WEEX_support_smart_Bot

VIP Services：support@weex.com