Hong Kong plans to impose licensing on virtual assets on the premise that financial stability cannot be affected

category:Finance
 Hong Kong plans to impose licensing on virtual assets on the premise that financial stability cannot be affected


According to the data disclosed by the SFC, there are dozens of virtual asset trading platforms in Hong Kong, which have attracted much attention in terms of investor protection.

According to the consultation document, the regulation covers the transaction, transfer, custody and management of virtual assets, as well as the provision of financial services for the issuance of virtual assets. According to the definition of the special organization, virtual assets are assets that express value in digital form, and the assets can be bought, sold or transferred in digital form, or used for payment or investment purposes.

The chief executive officer of the Hong Kong Securities and Futures Commission (SFC) said on November 3 that the SFC launched a regulatory framework for virtual asset trading platforms last year, but it is still difficult to regulate all platforms. After the introduction of the licensing system, all virtual platforms operating in Hong Kong or targeting Hong Kong investors must apply for a licence and be subject to the supervision of the authorities. All virtual asset trading platforms will operate under last years regulatory framework and licensing system.

As a matter of fact, as early as November 1, 2018, the Hong Kong Securities Regulatory Commission (SFC) has issued a conceptual framework for the virtual asset trading platform, including virtual asset portfolio management companies and virtual asset fund distributors under the supervision of the SFC. Funds with more than 10% asset size (AUM) belonging to virtual assets can only be sold to professional investors Both gold and brokerage institutions need to be registered with the SFC.

In addition, in November 2019, the Hong Kong Securities Regulatory Commission (SFC) issued a position paper on the supervision of the virtual asset trading platform. When applying for a voluntary license, relevant institutions can apply for the current No. 1 and No. 7 licenses. The former is a securities trading license, and the latter is an automated trading license.

600 fintech companies settled down

Industry insiders believe that there are overlaps between the blockchain business and the financial sector, so Hong Kong, China, as one of the international financial centers, has the inherent advantages of developing a blockchain center. In fact, some early blockchain startups have emerged in Hong Kong, such as bitcoin derivatives exchange bitmex, blockchain cross-border remittance platform bitspark and blockchain investment company kenetic capital.

On the financial technology ecosystem, he pointed out that there are more than 600 financial technology start-ups and companies in Hong Kong, and world-renowned innovation laboratories and accelerator programs, such as the innovation hub center of the bank for International Settlements, Accentures financial technology innovation laboratory and Deloittes Asia Pacific regional block chain laboratory, have all settled in Hong Kong.

He said frankly that the world still needs to be entangled with the new coronavirus for a period of time. Under the new normal, we believe that with the help of the state in financial technology

Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679