Hong Kong securities watchdog issues rules on funds investing in crypto

Hong Kong's Securities and Futures Commission (SFC) formalized a framework aimed to regulate funds with more than 10% of their portfolio in crypto, defined as "digital representations of value which may be in the form of digital tokens," which could include crypto native tokens as well as security tokens. The regulations include a requirement of 3 million Hong Kong dollars ($382,000) in capital, an appointed third-party custodian, and for the fund to separate the assets of the fund and the fund manager.

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