Hashkey receives SFC’s approval to manage crypto portfolio- Decoding details
Hong Kong-based HashKey Capital Limited has been granted a license from the Securities & Futures Commission (SFC) in Hong Kong to manage portfolios invested in 100% virtual assets.
After the lifting of the type 9 license for asset management, HashKey will only be able to manage portfolios that invest in cryptoassets in accordance with the SFC’s regulations. In this regard, Dr. Xiao Feng, Chairman, HashKey Group, stated,
“HashKey Group was among the first enthusiasts and advocates of the crypto industry … This type 9 licensing increase reinforces our commitment to promote and advance the blockchain community in Hong Kong and across Asia.”
HashKey Capital Limited is one of Asia’s leading digital asset management companies headquartered in Hong Kong with operations in Singapore and Tokyo.
The group had raised $360 million in January this year to fund entrepreneurs and ventures engaged in creating innovative blockchain and virtual asset solutions.
The focus areas are blockchain technologies including base layer protocols, in addition to Web 3.0 solutions. It has invested in a number of prominent crypto projects, including Polkadot, BlockFi and Moonbeam.
Are crypto regulations being streamlined?
In Hong Kong, cryptocurrency is not prohibited. But the trade is regulated by the SFC.
On January 28, 2022, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority issued a joint circular on intermediaries’ virtual asset-related activities that provided a blueprint for the regulatory model regarding cryptoassets.
It said that entities currently engaged in virtual asset-related activities must ensure that their activities comply with the guidelines and regulations of the said regulatory bodies.
On 24 June 2022, the government adopted gazetted the Anti-Money Laundering and Counter-Terrorism Financing (Amendment) Bill 2022 which introduces a licensing regime for virtual asset service providers (VASPs).
The move gave the SFC extensive powers to monitor and regulate crypto asset trading in the country. Any VASP wishing to operate in Hong Kong must be registered with the SFC. The bill also ensures that licensed VASPs comply with customer due diligence and record-keeping requirements.
So far, very few cryptocurrency trading companies have managed to secure licenses from Hong Kong’s SFC.
Interestingly, MaiCapital Limited, a Hong Kong-based cryptocurrency fund managerhas been granted Type 4 and 9 licenses of the SFC. Huobi Asset Management (Hong Kong) Limited has also been granted Type 4 and 9 licenses by the regulatory body.
