According to BlockBeats, Hong Kong Financial Services and the Treasury Bureau Director Paul Chan said that in order to effectively regulate Hong Kong's virtual asset industry and enable its sustainable development, the Securities and Futures Commission and the Hong Kong Monetary Authority issued the "Joint Circular on Virtual Asset-Related Activities of Intermediaries" (the "Joint Circular") in January 2022, and revised the "Joint Circular" in October and December 2023 to optimize the regulations applicable to intermediaries participating in the distribution of virtual asset-related investment products.
According to the regulations, licensed corporations must notify the SFC in advance if they intend to engage in any activities involving virtual assets, while registered institutions must notify the SFC and the HKMA. Generally speaking, licensed or registered intermediaries can distribute virtual asset-related products after notifying the relevant regulatory authorities of the regulated activities without having to apply for a change in licensing conditions.
The investor protection measures set out in the Joint Circular, such as requiring clients to conduct virtual asset knowledge assessments and provide clients with relevant product information and warning statements, are intended to strengthen investor protection and allow clients to make informed investment decisions after fully understanding the characteristics and risks of relevant products. The Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission will continue to monitor market developments and review the requirements for virtual asset-related activities in a timely manner.
