In response to growing investor interest in gaining exposure to virtual assets via funds and unlicensed trading platform operators in Hong Kong, the Securities and Futures Commission (SFC) released a statement on 1 November 2018 clarifying the regulatory framework for virtual asset portfolio managers, fund distributors and trading platform operators.

The SFC has indicated it will adopt an approach which will bring a significant portion of virtual asset portfolio management activities into its regulatory supervision. It has also set out a conceptual framework which (if implemented) could provide a path for virtual asset trading platform operators that are willing to adhere to a high level of standards and practices to voluntarily submit themselves to regulation by the SFC, thereby setting them apart from those operators which do not seek to be supervised by the SFC.