Hong Kong Securities Group Opposes Ending 10% Crypto Exemption for Type 9 Managers

In a Tuesday submission, the Hong Kong Securities and Futures Professionals Association urged regulators to retain the de minimis exemption that lets Type 9 asset managers allocate under 10% of a fund's gross assets to virtual assets without a separate licence. The group warned that abolishing this threshold and mandating SFC-licensed custodians could raise costs, constrain private equity and venture funds, and discourage traditional managers from experimenting with limited crypto exposure.