• Hong Kong’s SFC has issued a round on the brand new licensing system for VATP.
• VATP should receive a license below the SFC to proceed working in Hong Kong.
• As per the round, license functions should be submitted by February 29, 2024.

The Hong Kong Securities and Futures Fee (SFC) issued a round on Could 31 saying transition preparations for a brand new licensing system for centralized cryptocurrency buying and selling platforms. A brand new licensing regime below the Cash Laundering and Counterterrorism Financing Ordinance (Cap 615) (AMLO) will come into impact at present, in keeping with the report.

The SFC has declared that below the brand new guidelines, any digital asset buying and selling platform (VATP) providing companies in Hong Kong should receive a license from the fee. It added that the discover solely applies to platforms that provide companies utilizing non-security tokens.

The round states that VATPs working within the metropolis earlier than 1 June 2023 are topic to a transitional association and should apply for a license by way of the SFC’s utility discussion board WINGS by 29 February 2024. emphasised. In distinction, VATPs that didn’t exist earlier than June 1st are usually not topic to transitional measures.

Because the fee argues, platforms that don’t intend to use for a license can be compelled to close down their companies and stop advertising actions in Hong Kong. It additionally mentioned that present VATPs might “proceed to offer VA companies in Hong Kong from 1 June 2023 to 31 Could 2024 with out violating licensing necessities below AMLO by non-violating association.” declared.

The fee additionally argued that “there isn’t any transitional association for compliance with the Securities and Futures Ordinance (SFO),” including:

Any VATP that intends to offer safety token buying and selling companies should adjust to the Hong Kong Securities Regulation and start enterprise providing safety token buying and selling solely upon acquiring the related license below the SFO.

The round is meant to offer platforms enough time to acquire licenses and proceed companies in Hong Kong, however the SFC strongly opposes any delay in submitting functions past February 2024. are doing. The Fee will reject functions submitted after the deadline.

The SFC has promoted regulation of cryptocurrency buying and selling with the intention of creating a regulatory compliant trade. The Fee’s proposal for a licensing system was put ahead earlier and was supported by many, however some known as for additional clarification.

The Hong Kong SFC launched a round on VATP’s new licensing system, first printed in Coin Version.

View the unique on CoinEdition