- The Hong Kong SFC has issued a round on the brand new VATP licensing system.
- As a way to proceed to function in Hong Kong, VATP should receive a license from the SFC.
- License functions have to be submitted by 2024. on February 29, as talked about within the round.
Hong Kong Securities and Futures Fee (SFC) on 31 Might. issued a round asserting transitional measures for a brand new licensing system for centralized cryptocurrency buying and selling platforms. A brand new licensing regime below the Anti-Cash Laundering and Anti-Terrorist Financing Ordinance (Cap 615) (AMLO) comes into pressure from right this moment, in line with the report.
The SFC has introduced that digital asset buying and selling platforms (VTPs) working in Hong Kong will likely be required to acquire a license from the fee below the brand new rule. She added that the round will solely apply to platforms that present companies with insecure tokens.
The round emphasised that VATP, which operated within the metropolis till 2023. June 1, could also be topic to transitional preparations and should apply for a license by 2024. February 29 via the SFC utility discussion board WINGS. In distinction, VATPs that didn’t exist earlier than June 1 usually are not topic to transitional measures.
In line with the fee, platforms that don’t intend to use for a license can be pressured to stop their companies and stop advertising and marketing actions in Hong Kong. It was additionally introduced that current VATPs might “proceed to offer VA service in Hong Kong from 2023.” June 1 till 2024 Might 31 with out violating the licensing necessities below the AMLO non-infringement settlement’.
The fee additionally stated there are “no transitional preparations for compliance with the Securities and Futures Ordinance (SFO)”, including:
VATPs intending to offer securities token buying and selling companies will likely be topic to the Hong Kong securities legal guidelines and will solely begin securities token buying and selling after acquiring an applicable license below the SFO.
Whereas the round intends to permit adequate time for platforms to acquire licenses and proceed companies in Hong Kong, the SFC strongly opposes any delay in submitting after 2024. February. The fee harassed that any utility submitted after the deadline can be rejected.
The SFC has promoted laws on digital asset buying and selling to create an trade that’s compliant with the authorities’ necessities. The Fee’s proposal for a licensing system was tabled earlier and lots of supported it, though some requested for additional clarification.
