Hong Kong Securities and Futures Commission (SFC), Discussions on whether individual investors should be allowed to invest in crypto.
SFC before 1 June, any operating cryptocurrency The trading platform needs to be licensed and unlicensed transactions end their business in Hong Kong.
Hong Kong Securities and Futures Commission (SFC) Prepares to Accept Cryptocurrencies
The Securities and Futures Commission (SFC) started a discussion today on the recommended requirements for operators of virtual asset trading platforms.
SFC said in its statement:
All centralized virtual asset trading platforms operating in Hong Kong or actively marketing to Hong Kong investors will need to be licensed by the SFC under a new licensing regime that will come into effect on 1 June 2023.
The SFC’s proposed regulatory requirements for virtual asset trading platforms are based on the regulatory requirements of the current regime under the Securities and Futures Regulations.
As part of the negotiation, the SFC is seeking opinion on measures to be implemented in addition to the proposed robust investor protection measures, which include, in particular, whether licensed platform operators should be allowed to serve individual investors and, if so, ensuring compliance in client recruitment and token acceptance.
“As has been our philosophy since 2018, the requirements we propose for virtual asset trading platforms include robust safeguards to protect investors, following the ‘same business, same risks, same rules’ principle,” said Julia Leung, SFC Chief Executive Officer.
“In light of the recent turmoil and the collapse of some of the world’s leading crypto trading platforms, there is a clear consensus among regulators around the world that regulation in the virtual asset space should ensure adequate protection of investors and effective management of underlying risks.”
Operators of virtual asset trading platforms planning to apply for licenses, including pre-existing platforms, should begin to review and revise their systems and controls to prepare for the new regime.
Those who do not plan to apply for a license should start preparing to close their business in Hong Kong on an orderly basis.
*Not investment advice.
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