Hong Kong SFC issues transitional arrangements for the licensing regime for virtual asset trading platforms

06/01 03:36

On 1 June, the Securities and Futures Commission of Hong Kong (SFC) issued a circular on the transitional arrangements for the new licensing regime for virtual asset trading platforms. The transitional arrangements aim to provide a reasonably sufficient period of time for virtual asset trading platforms that are providing virtual asset services in Hong Kong before 1 June 2023 and are ready to comply with the SFC's guidelines to apply for a licence and to review and revise their systems and controls to comply with the applicable legal and regulatory requirements. Virtual asset trading platforms that do not intend to apply for a licence should proceed to wind down their operations in an orderly manner. Virtual asset trading platforms that are providing virtual asset services and have a meaningful and substantial business in Hong Kong before 1 June 2023 may continue to provide virtual asset services in Hong Kong during the period from 1 June 2023 to 31 May 2024 (i.e. for the first 12 months from 1 June 2023) under the non-compliance arrangement without breaching the licensing requirements under the AMLO. The requirement To be eligible to participate in the transitional arrangements, a virtual asset trading platform must have provided virtual asset services in Hong Kong before 1 June 2023.
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