Hong Kong Securities and Futures Commission opens new set of rules for virtual money fund managers

According to foreign media today, the Hong Kong Securities and Futures Commission has announced a new set of rules for fund managers to manage virtual currency assets. It is reported that the arrival of the new regulations coincides with political turmoil and the bitcoin trading volume is higher than the past. The new regulations total 37 pages and include guidelines for fund structure, risk management, custody, record keeping, asset separation and other important legal and logistical matters. The new rules also contain specific financial regulations that involve “if the virtual asset fund manager holds virtual assets on behalf of the funds it manages, the virtual asset fund manager should always maintain a liquidity of not less than the equivalent higher value (a) 3 million Hong Kong dollar and (b) the working capital required for its variables."