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


Or new plate No. 11

To this end, on November 3, the financial services and Treasury Bureau of the Hong Kong SAR Government conducted a public consultation on legislative proposals to strengthen the regulation of anti money laundering and terrorist fund-raising, and proposed to establish a licensing system for virtual asset service providers. The industry is expected to become the No. 11 license in addition to the 10 financial licenses currently issued by the SFC.

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.

According to the existing regulatory system in Hong Kong, if virtual assets do not fall within the legal definition of securities or futures contract, they will not be regulated by the SFC, and investors will not be protected by the SFO.

Mr Alderley said the previous regulatory framework was not mandatory and that operators of virtual assets could avoid regulation, for example, by ensuring that encrypted assets were not securities. The publication of this consultation document is to supervise the virtual asset service provider by the compulsory licensing system, and makes a more detailed supplement on anti money laundering, licensing rules, supervision and responsibility determination, conviction and sentencing for violation of the law.

600 financial and technological companies settled

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.

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: responsible editor of economic report in the 21st century: chenhequn_ NB12679