Hong Kong's new cryptocurrency asset management regulations face industry resistance, with the association warning that "all or nothing" license requirements may inhibit innovation BlockBeats News: On January 20th, Hong Kong's securities industry group raised objections to the city's proposed regulatory framework for digital asset management, warning that related reforms may hinder traditional asset management institutions from entering the cryptocurrency field. In its submission to regulatory authorities on Tuesday, the Hong Kong Securities and Futures Professional Association opposed a proposed regulatory adjustment that would eliminate the existing "minimum exemption threshold" for asset managers with license plate 9. According to a report by local law firm Junhe, under the current framework, institutions holding license 9 (covering discretionary investment portfolios and asset management businesses) that allocate less than 10% of their total fund assets to cryptocurrency only need to report to regulatory authorities without applying for additional license upgrades. The Hong Kong Securities and Futures Professional Association pointed out that the proposed reform will eliminate this threshold, which means that even if only 1% of Bitcoin exposure is allocated, a complete virtual asset management license must be obtained. The industry group stated that this' all or nothing 'regulatory approach lacks proportionality principles and believes that it will still bring huge compliance costs in situations where risk exposure is limited, which may hinder traditional regulatory agencies from attempting encrypted asset classes. This industry rebound is aimed at the regulatory framework that has entered the fast lane. In December last year, the Hong Kong authorities released a consultation summary report on relevant reform proposals after launching a public consultation in June. The Financial Services and the Treasury Bureau of Hong Kong and the Securities and Futures Commission have conducted further consultations on the introduction of a supplementary licensing system for cryptocurrency trading, consulting, and management services.