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Hong Kong Reveals Crypto Rules in Push to Tame Wild Market

  • Crypto fund managers need to apply for regulatory license
  • New rules open potential route to the licensing of exchanges
Inside The DMM Mining Farm As Japan Unveils Guidelines For Allowing Initial Coin Offerings
Photographer: Tomohiro Ohsumi/Bloomberg
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Hong Kong’s securities watchdog unveiled new rules for cryptocurrency funds and said it may regulate digital-asset exchanges, joining a global push to improve supervision of an industry whose rapid expansion has attracted everyone from mom-and-pop investors to Wall Street banks.

Fund managers that invest more than 10 percent of their portfolio in crypto assets will need to be licensed, the Securities and Futures Commission said in a statement Thursday. Trading platforms that serve only professional investors can opt to move into a so-called sandbox, where they will be free to experiment subject to anti-money laundering and other rules.