Quick reading of the Hong Kong Securities and Futures Commission’s “Guidelines on Virtual Asset Trading Platforms”

The Securities and Futures Commission of Hong Kong today launched a consultation on the proposed regulations applicable to operators of virtual asset trading platforms. In the consultation document of nearly 200,000 words, the main proposed regulatory provisions applicable to licensed virtual asset trading platform operators as well as transition arrangements and other implementation details of the new system are set out:

1️⃣ Virtual asset trading platforms licensed by the Securities and Futures Commission must comply with the "Guidelines for Virtual Asset Trading Platforms";

2️⃣ The Securities and Futures Commission will delete the corresponding licensing conditions from the licenses of existing licensed platform operators under the Securities and Futures Ordinance;

3️⃣ The Securities and Futures Commission recommends that all types of investors (including retail investors) be allowed to use trading services provided by licensed virtual asset trading platform operators, provided that the relevant platforms comply with relevant appropriate investor protection measures and provide services based on the user’s personal financial situation.