FTFT's Asset Management Business Eligible to Manage Virtual Assets

Rhea-AI Summary

Future FinTech Group Inc. (NASDAQ: FTFT) announced that its 90%-owned subsidiary, Nice Talent Asset Management Limited (NTAM), has become eligible to manage virtual assets under specific conditions set by the Securities and Futures Commission of Hong Kong. NTAM is currently assessing the feasibility of virtual asset management, while maintaining its existing investment mandate. NTAM holds licenses for advising on securities and asset management, and will only manage virtual assets constituting less than 10% of its portfolio. This move reflects the growing importance of virtual assets in investment strategies.

Positive

• NTAM is now eligible to manage virtual assets, enhancing its service offerings.
• The move aligns with new regulations in Hong Kong, indicating a strategic adaptation to market changes.
• NTAM's established partnerships with international banks and high net worth clients bolster its market position.

Negative

• The management of virtual assets will be limited to under 10% of NTAM's gross asset value, which may restrict potential revenue growth.

NEW YORK, June 13, 2022 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as "Future FinTech", "FTFT" or "the Company"), a blockchain application technology developer and fintech service provider, announced today that Nice Talent Asset Management Limited ("NTAM"), its 90%-owned Hong Kong-based asset management company, has become eligible to manage virtual assets under certain conditions and the asset class is below 10% of gross asset value of its portfolio. In order to engage in the management of virtual assets, NTAM shall comply with the regulatory requirements issued by the Securities and Futures Commission of Hong Kong ("SFC"). Currently, NTAM is exploring and analyzing the feasibility of managing virtual assets but there has been no change in its investment mandate as of the date of this announcement.

NTAM is licensed under the SFC to carry out regulated activities in 'Type 4: Advising on Securities' and 'Type 9: Asset Management' with eligibility in managing virtual assets based upon the recent change of regulations in Hong Kong to include virtual assets in asset management services, given certain conditions are met. NTAM's current business partners include major international banks and its clients are high net worth customers. Hong Kong is widely recognized as a leading asset management center in Asia with a large concentration of international fund managers.

NTAM's business focus is to work alongside its clients to help them grow their wealth and achieve their investment goals. NTAM believes that virtual assets can be an important holding in risk-weighted investment portfolios as it has matured as an asset class and represents an evolution in investment strategy. NTAM specializes in aligning investment opportunities with its clients' interests while offering tailored and flexible investment strategies in every market environment, and NTAM believes that virtual assets represent such an opportunity in today's investment world.

Mr. Shanchun Huang, CEO of Future FinTech, stated, "We are pleased that NTAM is exploring opportunities that meet the needs of the investment community since virtual assets are becoming an increasingly essential and sophisticated asset class across a wide spectrum of investors. We believe that this strategic asset will further bolster NTAM's ability to offer investment opportunities and best-in-class asset management and investment consulting services for institutional investors and high net worth investors in Hong Kong."

About Future FinTech Group Inc.

Future FinTech Group Inc. is a blockchain application technology developer and fintech service provider incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), supply chain financing services, and cryptocurrency market data services. The Company is also engaged in the development of blockchain based e-Commerce technology and cryptocurrency mining, cryptocurrency investment management as well as financial service technology businesses. For more information, please visit http://www.ftft.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2021 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

 

 

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SOURCE Future FinTech Group Inc.

FAQ

What recent development has Future FinTech Group (FTFT) announced regarding virtual assets?

Future FinTech Group announced that its 90%-owned subsidiary, NTAM, is eligible to manage virtual assets under certain conditions as per new regulations in Hong Kong.

What is the significance of NTAM managing virtual assets for FTFT?

This development enhances NTAM's service offerings and aligns with market trends, potentially attracting more institutional and high net worth investors.

What are the regulatory requirements for NTAM to manage virtual assets?

NTAM must comply with specific conditions set by the Securities and Futures Commission of Hong Kong to manage virtual assets.

How much of NTAM's portfolio can be allocated to virtual assets?

NTAM can manage virtual assets constituting less than 10% of its gross asset value.

When was the announcement about NTAM's eligibility to manage virtual assets made?

The announcement was made on June 13, 2022.