Hong Kong regulator proposes rules for cryptocurrency platforms

The Hong Kong Securities and Futures Commission (SFC) has launched public consultations on new requirements for operators of digital asset trading platforms. The говорится on the agency’s website.

Under the proposed rules, from 1 June 2023 all centralized platforms operating in Hong Kong or dealing with local investors must hold an SFC licence.

As part of the consultation, the regulator wants to know whether to allow them to serve retail clients. If the answer is affirmative, the Commission asked for details on what measures should be implemented as their additional protections.

“In light of recent upheavals and the collapse of some leading crypto trading platforms among regulators worldwide, there is an obvious consensus on regulating the virtual assets space to ensure proper investor protection and effective risk management,” said SFC chief Julia Leung.

The department added that industry participants should start analysing and revising their systems and controls in preparation for the new regulatory regime. Unlicensed companies will not be able to continue operating.

In October 2022, media reported that the SFC allowed retail investors to directly invest in cryptocurrencies.

Later, Hong Kong authorities passed amendments to the anti-money laundering and counter-terrorist financing law, extending its application to virtual asset service providers from 1 June 2023.

Earlier in 2023, the jurisdiction’s financial secretary Paul Chan stated its readiness to welcome cryptocurrency companies from around the world.

Earlier, former BitMEX CEO Arthur Hayes suggested that China is trying to return to the crypto industry through Hong Kong.