How to do a co -regulations cryptocurrency fund in Hong Kong?

1. Please introduce the history of the forefront of the forefront, the status quo and future development plan

Fore Elite Capital is an asset management company established in Hong Kong in 2017 by Mr. Ye Yizhou EJOE YE in 2017. This year is the 14th year of Mr. Ye's work in the hedge fund industry. The company's name was called Fore Elite Capital because Mr. Ye's first job after graduating from Columbia University Business School was an analyst at Fore Research, which was founded by Mr. Li Yanxiu in New York in New York. Li Yanxiu's Fore Research is the earliest, the most successful fund for Chinese entrepreneurship in Wall Street, USA. The strategy is Multi-Strategy, which is mainly based on CB Arbitrage. Mr. Li Yanxiu was regarded as a benchmark by the Chinese people who broke through Wall Street, so the asset management company established by Mr. Ye also added Fore to the company's name in order to pay tribute to Mr. Li.

At the front of the forefront of rational capital in 2019, it has applied for a virtual asset -funded license issued by the Hong Kong Securities Regulatory Commission, and was officially permitted in January 2022. In March of the same year, there was the first compliance virtual asset fund at the cutting edge of the same year. In February 2023, the Hong Kong Securities Regulatory Commission's second -time UPLIFT cutting -edge rational asset management rights made the frontier a true sense of a multi -strategy hedge fund to obtain a virtual assets to be regulated. In 2022, the global virtual asset market due to Luna and FTX minesweedes caused huge fluctuations, but the forefront was still in a difficult market, and a considerable cash dividend was distributed to the market. Confidence.

Since the cutting -edge rational capital gene comes from the traditional hedge fund world and the company has also obtained the permission of supervision, the forefront has a rational future positioning and helps traditional financial institutions, investing and entering the virtual asset industry through compliance methods. Bitcoin has been born in less than 15 years. The virtual asset industry, especially virtual asset management and hedge funds in a very early stage; because the industry participants rarely come from traditional and regular financial institutions, the practitioners themselves themselves for themselves. The cognition of the asset management industry has certain limitations, so that most virtual asset management companies do not connect with traditional large financial institutions. In this way, the confidence in the virtual asset industry is also a test, which is equivalent to everyone for a long time. As a result, I do nt know what the other party wants. When traditional financial institutions choose asset management partners, there are three hard lines 1) compliance. Compliance means that the front, middle and backstage of an asset management company can meet the supervision and the opponent's demands of 360 degrees without dead ends. From RISK Control, Accounting, Audit, Fund Admin, Custody, Compliance, Legal, Research, Trading to IR, every part of Fundraising requires strict investment costs. 2) There is a length and height track record. In the interior to see the goal, the layman looks lively. Although the industry is in a period of early impetuous early stage, when the real traditional player enters, there is no time to precipitate and the performance that has been proven. It is almost impossible to touch the fish in muddy water. 3) Reliable teams and investment strategies. These three hard lines are tickets for virtual asset management agencies to do long -term business. After so many years of precipitation, cutting -edge capital should have received tickets. In the future, cutting -edge rationality will continue to work hard to lead the industry and do a bridge for docking with traditional financial institutions.

2. How the

cryptocurrency

fund is managed in the Hong Kong licenses, which is the same as that of the United States, Singapore and other places.

Hong Kong: Fund managers engaged in fund business in Hong Kong are regulated by the Hong Kong Securities Regulatory Commission SFC. Apply for different licenses according to the business application, but at least need to apply for Type 9: Asset Management. SFC mainly regulates fund managers and fund products based on Securities and Futures Ordinance and FundManager Code of Conduct. These laws and regulations are generally suitable for various fund managers of various investment targets. On October 4, 2019, SFC released the Proforma Terms and CONDITIONSED CORPORATIONS Which Portfolios that Invest Virtual Assets, which is a stabbing of virtual assets. Fund owned by licensed institutions invests more than 10%of cryptocurrencies, and it is necessary to obtain SFC approval licenses. The forefront is reasonable to be the first batch of fund companies to submit the application, but it took almost 2 years to officially officially uplift to become a very small number of compliance management 100% pure virtual asset funds in Hong Kong. It can only be provided to professional investors (“Professional Investor”.

Singapore: Unlike Hong Kong, Singapore is supervised by a regulatory agency with different financial activities. Hong Kong is the Management Bank of the HKMA, the CIRC Management Insurance, the Securities Regulatory Commission Management of the Securities Futures Fund Company, and Singapore is the entire content of a MAS pipe. MAS mainly regulates the establishment of a fund in Singapore according to the Securities and Futures Act. In general, the fund manager also needs to get a license. According to the fund targeting investors, the number of AUM and investors, or invest in the fund. To decide to take different licenses, mainly registered fund management companies (“RFMCS”) and Licensed Fund Management Companies (“LFMCS”). Of course, there are many restrictions on RFMC, so applications are relatively easy to apply. Unlike Hong Kong, Singapore does not have laws and regulations specifically for managing virtual assets. Therefore, on Paper's managing virtual currency funds can take ordinary fund licenses like managing other traditional funds, and no additional UPLIFT is required. But because it was relatively loose before, after a series of thunderstorms in 2022, the Singapore government and MAS have become conservative for cryptocurrencies. Essence

The United States: The US regulatory fund business is mainly from two levels. 1) It is the Issuer-level that is from the perspective of the Investment Into the Fund, depending on the investor's Domicile to determine whether the fund's investment is supervised by the US Securities Act and the corresponding state law. Of course, if the fund meets some of some Exemptions of Securities ACT and Investment Company Act, it may not need to be registered and registered. For example, whether the fund is only targeted at professional investors, whether the number of US residents, the limited number of fund investors, etc. 2) Regarding the manager of Adviser-Level fund manager, according to the fund Portfolio Assets whether it is Securities or Commodities, it is determined whether it is registered by SEC or CFTC. The important regulations are INVESTMENT Advisers Act. Of course, there are certain Exempting. If the fund manager is satisfied, it can also exempt registration. It is mainly Venture Capital Adviser Exempting and Private Fund Adviser Exempting. At present Which regulatory agency is very fierce in supervision. The unclear regulatory system has also led to the status of the cryptocurrency fund manager in the United States. To a certain extent, the fund scale is limited.

Of course, these are a little understanding of compliance companies and paths. It is not suitable for various types of P2P and false trading platforms at all. If you want to understand further, it is recommended to consult a professional lawyer or consultant to interpret judicial jurisdiction in different places.

3. How to view Hong Kong's current support policies for Web3, what are the opportunities for the industry after compliance, and whether it will cause some restrictions on the industry

Overal is positive. Whether it is the industry or to Hong Kong. The clear regulatory system has given everyone a peaceful pill, knowing what can be done, and the long -term support of policy promotion can let everyone know that this is a sustainable development. It can attract more people/funds to return to Hong Kong or stay in Hong Kong. In this regard, we admire the courage of the Hong Kong government and the Hong Kong regulatory agency, and dare to explain clear support and support in the world, rather than vague, but only ambiguous.

Opportunity: As I just said, due to the clear policy direction, everyone can let go of the matter to make things bigger, no longer fear of feet, and scared. Of course, some Player will withdraw from the Hong Kong market after weighing the advantages and disadvantages, because the cost of compliance is also some. Some people are willing to pay, and some people are unwilling. Compliance provides better soil for participants with long -term virtual assets.

4. From the perspective of the fund, how to look at the macroeconomic trend of 2023 and its impact on cryptocurrencies, what opportunities and risks

Since the round of this cycle, the market has paid enough attention and interpretation of the macroeconomic economy. Especially last year is a macro year, and β is far more important than α. But this year will not be the same as last year. One is that the market has a good macro price. Unless there is another black swan incident like last year like the Russian and Ukraine War, this cannot be predicted. The marginal impact is weakened, so α will be more important. Looking for the α of the encrypted market, we will pay attention to the fundamental innovation and improvement business, projects, etc. in the fundamentals.

The more mainstream opportunities include Ethereum Shanghai upgrade and LSD, L2 overall development; the emergence of the Bitcoin Ordinals protocol and its NFT opportunities. However, for cutting -edge, the impact of the market's upper and lower performance on the Hedge Fund's performance is only part of it. Our strategy includes Quant, Event Driven and Fundamental. So high. Therefore, when Bitcoin fell by about 60% in 2022, the frontier flagship fund rose by 10%.