According to Odaily, the Hong Kong Securities Regulatory Authority has announced plans to enhance its advertising and continue to remind investors to trade virtual assets only on officially licensed platforms. The government will maintain close communication with the regulatory authority to expedite the processing of all platform applications, providing citizens and investors with more secure investment options.
Looking ahead, Hong Kong will further improve its regulatory framework, including the regulation of over-the-counter service providers for virtual assets, to build a robust ecosystem for the virtual asset industry and promote its responsible and sustainable development. The regulatory authority emphasized that virtual asset trading platforms that are considered to be licensed must demonstrate the actual implementation and effectiveness of their policies, procedures, systems, and monitoring measures to comply with regulatory requirements.
These platforms are not expected to actively promote their services or establish business relationships with new retail customers before they are officially licensed. The regulatory authority has also issued a statement on the end of the non-violation period for virtual asset trading platforms. The public is reminded that the non-violation period applicable to virtual asset trading platforms operating in Hong Kong under the Anti-Money Laundering and Terrorist Financing Ordinance (Chapter 615) (the Anti-Money Laundering Ordinance) will end on June 1, 2024.
All virtual asset trading platforms operating in Hong Kong must be licensed by the regulatory authority under the Anti-Money Laundering Ordinance, or be applicants for virtual asset trading platforms that are considered to be licensed. Operating a virtual asset trading platform in violation of the Anti-Money Laundering Ordinance in Hong Kong is a criminal offense, and the regulatory authority will take all appropriate actions against any illegal activities.