PANews reported on January 20 that the Hong Kong Securities and Futures Professionals Association (HKSFPA) publicly opposed the regulator's proposal to remove the "exemption threshold" for virtual asset investment by Type 9 asset management firms. The association pointed out that this measure would force even funds allocating only 1% of their assets to Bitcoin 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. Furthermore, the association criticized the proposed requirement to hold assets solely through licensed custodians, which could restrict the operation of Web3 venture capital funds, and called for the introduction of flexible arrangements between self-custody and offshore custody.