On 20 February, the Securities and Futures Commission in Hong Kong (SFC), an independent statutory body, launched consultation on a proposal for legal requirements for operators of virtual asset trading platforms.

According to the proposal, the new licensing regime is to take effect on 1 June 2023. Under the proposal, all centralised virtual asset trading platforms operating in the territory of Hong Kong will have to be licensed by the SFC.

The requirements proposed by the SFC are based on the requirements of the regime effective under the Securities and Futures Ordinance. They are comparable to the requirements concerning the licensing of securities brokers and automated trading venues.

As part of the consultation, the SFC is collecting opinions from market participants. Particularly important opinions include opinions on whether it would be appropriate to allow licensed platform operators to provide services to retail investors, and if so, what regulations should be implemented besides the proposed measures of investor and client protection, and what rules should be introduced for token trading.

The entities that would like to submit their comments to the proposed legal amendments may send them by 31 March 2023 via e-mail to: VATP-consultation@sfc.hk, by post to: …………, or by fax to: (852) 2293 4004.

Source:https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR5