Dechert Advises Hong Kong Fund Manager on Securing SFC Approval to Manage Crypto Funds

January 26, 2022

Dechert has successfully represented a Hong Kong licensed fund manager in securing regulatory approval to manage portfolios that directly invest up to 100% in virtual (crypto) assets from the Hong Kong Securities and Futures Commission (SFC). This places Dechert as one of the first law firms in Hong Kong to have secured such approval for a client.

With the regulatory approval, the fund manager is set to launch a crypto fund that invests 100% in crypto assets, and Dechert has been retained to advise them on matters relating to the formation and management of this fund.

“We are delighted to have supported our client in becoming one of the first Hong Kong fund managers to have obtained the regulatory approval needed to roll out their crypto strategy,” said Michael Wong, Hong Kong-based partner of Dechert’s Financial Services Practice. “There has been a growing interest for investment products in crypto assets in the Asian market, and we have been at the forefront of responding to client needs in this space with our market-leading expertise in financial services regulations and all types of investment funds.”

Dechert’s team in Hong Kong and the U.S. has market-leading crypto assets experience, including the principal aspects that are relevant to the crypto ecosystem. The team has advised clients in relation to the licensing upgrade application for Hong Kong fund managers to invest into crypto assets, the formation of crypto funds, as well as Hong Kong and U.S. regulatory requirements and transactional documentation for token issuers, crypto exchange operators and crypto fund managers.

The Dechert team that secured the regulatory approval from the SFC for the Hong Kong fund manager was led by partner Michael Wong and associate Jason Chan in Hong Kong.

About Dechert

Dechert is a leading global law firm with 22 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.

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