The Hong Kong Securities and Futures Commission (SFC) has issued an updated joint circular regarding intermediaries' involvement in virtual asset-related activities, outlining specific guidelines and regulations:
1. **Authorized Virtual Asset Funds:**
- Allowed to invest in virtual asset tokens (VA Tokens) exclusively on licensed virtual asset trading platforms (VATPs).
- This investment can be direct or indirect.
- Fund companies must demonstrate a good compliance track record.
- At least one qualified staff member with expertise in managing virtual assets or related products is required.
2. **Spot Virtual Asset ETFs Approved by Hong Kong SFC:**
- These ETFs are permitted to engage in subscriptions and redemptions using both physical assets and cash.
- Eligible primary shareholders should be either:
- SFC-licensed corporations or registered institutions.
- Subject to additional terms and conditions imposed by the licensing department, if applicable.
These guidelines set forth by the SFC in Hong Kong aim to regulate the involvement of intermediaries in virtual asset-related activities. They establish criteria for authorized virtual asset funds and outline specific conditions for spot virtual asset ETFs, ensuring compliance, expertise, and proper regulatory oversight in these investment activities.
