Hong Kong’s SFC to allow crypto trading
Final guidelines for crypto investment will become effective starting 1 June 2023.
The Securities and Futures Commission (SFC) of Hong Kong said it concluded the consultation for the regulation of virtual asset or cryptocurrency trading platforms.
Its finalised guidelines will be effective starting 1 June. Platform operators of crypto trading platforms who are equipped to comply with SFC’s guidelines are welcome to apply for licensure.
Businesses that have no intention of doing so should take the necessary steps to ensure an organised closure of their operations in Hong Kong.
In the ‘Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC’ document, it stated that the commission received proposals regarding crypto trading platforms and their operability.
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The period of consultation ended last 31 March, to which the SFC obtained 152 written responses from professionals across different institutions in the industry.
The majority of respondents supported the proposal to permit licensed trading platform operators to serve retail investors.
To protect these investors, the SFC will implement measures such as suitability checks during onboarding, good governance practices, enhanced token due diligence, admission criteria, and comprehensive disclosures.