The Hong Kong Securities and Futures Professionals Association recently expressed opposition to the new regulations on virtual asset management to the regulatory authorities. The core issue is—if the current exemption for up to 10% crypto asset allocation under Type 9 (Asset Management) license is removed, even if an institution only wants to allocate 1% of virtual assets for diversification, they will need to apply for a new license. It sounds like the rules are stricter, but the consequences of doing so could be more troublesome than expected. For many small and medium-sized asset management firms, the additional approval processes and compliance costs will significantly increase. This is not to oppose regulation, but to suggest—can policy design be more reasonable and provide some flexibility for the industry? As an Asian financial center, Hong Kong's balancing of innovation and risk is truly a delicate matter.