The Hong Kong Securities and Futures Professionals Association opposes tightening cryptocurrency related licensing rules for asset management institutions According to Golden Finance, the Hong Kong Securities and Futures Professionals Association (HKSSPA) raised objections to the proposed regulatory provisions for digital asset management in its comments submitted to regulators on Tuesday, warning that these changes may prevent traditional asset management institutions from entering the cryptocurrency market. The key opposition of the association is that regulatory authorities plan to remove the "de minimis" threshold for existing Type 9 (Class 9) license managers. According to the current framework, companies holding Type 9 licenses - covering discretionary investment portfolios and asset management - can invest less than 10% of their total fund asset value in cryptocurrency assets without the need for additional license upgrades, provided they notify regulatory authorities (according to a report from local law firm Junhe Law Firm). HKSFPA stated that the proposed change will eliminate this threshold, and even a very small proportion of investments (such as a 1% allocation of Bitcoin) will require a complete virtual asset management license. The industry group pointed out that "this' all or nothing 'approach is disproportionate." They also said that this move will increase significant compliance costs, although the risk exposure is limited, and it will also hinder traditional managers from trying out encrypted asset classes. This industry opposition focuses on regulatory frameworks that have already gained momentum. In December last year, the Hong Kong authorities released a consultation conclusion on the relevant proposal, following the public consultation launched in June. Afterwards, the Financial Secretary and the China Securities Regulatory Commission further initiated consultations to introduce an additional licensing system for cryptocurrency trading, consulting, and management services.