Background: 

According to the "Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets" ("T&C"), managing portfolios that may comprise up to 100% of virtual assets in Hong Kong requires additional approval by HKSFC, also known as "VA uplift".

Requirements: 

Asset managers must submit a comprehensive application addressing the requirements outlined in the “T&C” and relevant documents, including Organization and Management Structure, Virtual Asset Fund Management, Operations (e.g., Record Keeping, Auditors and Audited Accounts, Fund Portfolio Valuation, Reconciliation, etc.), Dealing with the Fund and Fund Investors, and ongoing disclosure to the regulator.

How Do We Facilitate Seamless Operations Across Every Aspect of Your Virtual Asset Fund? 

As an independent alternative fund administrator, Precision Fund Services specializes in both traditional and virtual asset funds across the world's leading offshore and onshore fund jurisdictions. Through partnerships with industry leaders, including law firms, crypto custodians, exchanges, and auditors, we assist with your VA uplift application, fund formation, and provide comprehensive back-office services. Our expertise supports the entire life cycle of your digital asset fund management journey.

Our fund administration services play a pivotal role in ensuring the seamless operation and compliance of digital asset funds, including:

1. Supporting VA uplift in Hong Kong

2. Fund Pre-launch

3. Initial Fund Offering

4. Investors Reports

5. Annual Audit and Regulatory Reports

6. Operational Support

Case Study

We proudly supported one of our VA asset manager clients in successfully obtaining approval from the regulator for the VA uplift application in 2022. Our team provided crucial information regarding fund valuation policy, in-house digital asset expertise, wallet whitelisting procedure, fund transfer vetting procedures, KYC/AML practices and procedures, summary of AML manual coverage, subscription review procedures, subscription money monitoring mechanism, etc., related to virtual assets.

Our dedicated team also provided ongoing support to facilitate our client’s responses to the follow-up queries from the regulator. This achievement was made in January 2022 when HKSFC approved our client’s applications.

Contact us to know more about crypto fund administration services: Onboarding@precisionfundservices.com