The Securities and Futures Commission (SFC) has announced the release of the Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC. During the consultation period, the SFC received 152 written submissions. The proposed requirements were generally well-received, the proposal to allow licensed trading platform operators to serve retail investors is confirmed, and the proprietary trading, VA derivatives and other provisions of service such as earning, deposit-taking, lending and borrowing are prohibited. It also provides the listing requirements of token, and due diligence to be performed for each token. The SFC has modified or clarified some of the proposed requirements based on the feedback received from respondents. The Guidelines for Virtual Asset Trading Platform Operators will come into effect on June 1, 2023. These guidelines set out various requirements that licensed trading platforms must follow, including safe custody of asset, segregation of client assets, avoidance of conflicts of interest, and cybersecurity standards. The SFC will provide additional guidance on the new regulatory requirements and implementation details, as well as information about the transitional arrangements. Those who do not plan to do so should proceed to an orderly closure of their business in Hong Kong.
Resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR53