The Securities and Futures Commission of Hong Kong: Implements virtual asset trading from June 1st.
"The Guidelines for Virtual Asset Trading Platform Operators" will take effect on June 1, 2023. The China Securities Regulatory Commission will provide additional guidance on the new regulatory requirements, other implementation details (including licensing application procedures), and transition arrangements.
The China Securities Regulatory Commission (CSRC) today released a summary of the consultation on proposed regulatory provisions for virtual asset trading platform operators licensed by the CSRC.
During the consultation period, the CSRC received 152 submissions from the industry and professional organizations, professional and consulting firms, market participants, licensed corporations, individuals and other stakeholders. Respondents generally welcomed the proposed regulations, while several respondents requested clarification from the CSRC. After considering a wide range of opinions and proposals, the CSRC has modified or clarified some of the proposed regulations.
The vast majority of respondents agreed with the CSRC's proposal to allow licensed trading platform operators to provide services to retail investors. The CSRC will implement a series of measures to protect these investors, including ensuring suitability, good governance, enhanced token due diligence, inclusion in standards and disclosure in the process of establishing business relationships with clients.
Ms. Leung Fung-yee, Executive Director of the CSRC, said, "Clear regulatory expectations can promote responsible development. Hong Kong's comprehensive virtual asset regulatory framework follows the principle of 'same business, same risk, same rules', aiming to provide adequate investor protection and control major risks, thereby promoting sustainable development and supporting innovation in the industry."
The "Guidelines for Virtual Asset Trading Platform Operators" will take effect on June 1, 2023. The guidelines set out a number of standards and regulations applicable to licensed trading platforms, including prudent custody of assets, segregation of client assets, avoidance of conflicts of interest and network security. The CSRC will provide additional guidance on the new regulatory provisions, other implementation details (including licensing application procedures), and transition arrangements.
The CSRC welcomes virtual asset trading platform operators who are ready to comply with CSRC standards to apply for licenses. As for operators who do not intend to apply for licenses, they should take steps to wind down their business in Hong Kong in an orderly manner.
The CSRC will continue to work with investors and the Investor Education Council to remind investors of the risks of investing on unregulated platforms. In particular, although the regulations will take effect on June 1, 2023, the CSRC has not yet approved any virtual asset trading platform to provide services to retail investors, and most of the virtual asset trading platforms accessible to the public are not regulated by the CSRC.