The Securities and Futures Commission (SFC) today announced that all new virtual asset trading platform (VATP) applicants can now seek licences under its swift licensing process (Note 1).
This new licensing approach requires VATP applicants to implement their policies, procedures, systems and controls before conducting an external assessment on these measures. The SFC will become a party to the engagement to supervise the overall external assessment process.
This extension is made in light of the effectiveness of the SFC’s direct engagement and communication with deemed-to-be-licensed VATP applicants on the regulatory standards during its risk-based on-site inspections of all such applicants.
“The SFC is committed to fostering a healthy ecosystem and a robust regulatory framework for the development of virtual assets in Hong Kong. With the new approach, we will enhance our collaboration with VATP applicants, providing them with constructive and timely feedback, thereby enabling fully compliant VATPs to bring their services to investors more swiftly,” said Dr Eric Yip, the SFC’s Executive Director of Intermediaries.
To provide further guidance to new VATP applicants, the SFC issued a circular today (Note 2). The SFC also published the findings of its risk-based on-site inspections to provide more clarity on its expected regulatory standards (Note 3).
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Notes:
The SFC granted licences to four VATPs on 18 December 2024 under the swift licensing process. Please refer to the SFC’s press release dated 18 December 2024.
The circular provides additional guidance to new corporations applying for VATP licences. All VATP applicants which submit licence applications after 18 December 2024 should refer to this circular.
Details of the inspection findings are set out in the Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Findings from inspections on deemed-to-be-licensed virtual asset trading platform applicants and expected standards of conduct for virtual asset trading platform operators dated 16 January 2025 and its appendices.
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