Hong Kong industry insiders oppose stricter regulations on asset management virtual asset licenses, arguing that it could hinder traditional institutions from entering the market.

The Hong Kong Securities and Futures Professionals Association (HKSFPA) has publicly opposed the regulator's proposal to remove the "exemption threshold" for virtual asset investment by Type 9 asset management firms. The association argues that the measure would force even funds with only 1% Bitcoin allocation to apply for a full virtual asset management license, resulting in disproportionate compliance costs and potentially discouraging traditional asset management firms from exploring crypto assets.