- The Hong Kong SFC has issued a round on a brand new licensing system for VATPs.
- VATPs are required to acquire a license beneath the SFC to proceed their operations in Hong Kong.
- License purposes have to be submitted by February 29, 2024, in accordance with the round.
The Hong Kong Securities and Futures Fee (SFC) issued a round on Could 31 asserting transitional preparations for a brand new licensing system for centralized crypto buying and selling platforms. In line with the report, the brand new licensing regime beneath the Anti-Cash Laundering and Anti-Terrorist Financing Ordinance (Cap 615) (AMLO) is efficient from at the moment.
The SFC stated that beneath the brand new rule, digital asset buying and selling platforms (VATPs) offering providers in Hong Kong ought to be licensed by the fee. He added that the round would solely apply to platforms that present providers with insecure tokens.
The round identified that VATPs that had been working within the metropolis previous to June 1, 2023 are eligible for transitional provisions and should apply for a license by February 29, 2024, by means of SFC’s WINGS utility discussion board. Then again, VAT that didn’t exist earlier than June 1 will not be eligible for the transitional regime.
Because the fee asserts, platforms that don’t intend to use for the license can be pressured to close down their providers, ceasing their advertising actions in Hong Kong. It was additionally proclaimed that already present VATPs might “proceed to offer VA service in Hong Kong from June 1, 2023 to Could 31, 2024 with out breaching licensing necessities beneath AMLO beneath the non-compliance settlement.” visitors ticket”.
The fee additionally claimed that there was “no transitional provision to adjust to the Securities and Futures (SFO) Ordinance”, including:
VATPs that intend to offer safety token buying and selling providers can be topic to Hong Kong securities legal guidelines and will solely start enterprise offering safety token buying and selling providers after acquiring corresponding license beneath the SFO.
Though the round intends to permit adequate time for platforms to acquire a license and proceed their providers in Hong Kong, SFC strongly opposes any delay in submitting the applying after February 2024. The fee identified that any utility submitted after the deadline can be rejected.
SFC has promoted digital asset buying and selling laws with the intention of building the trade in compliance with the authority. The fee’s proposal for the licensing system was introduced earlier and was supported by many, though some requested for additional clarification.
