SFC briefs virtual asset trading platform applicants on regulatory expectations after transition period ends

The Securities and Futures Commission (SFC) held a briefing session today to explain its regulatory expectations to the virtual asset trading platform (VATP) applicants that are now deemed to be licensed after 1 June.

Over 60 participants, including representatives from the deemed-to-be-licensed VATP applicants and their consultants, attended the morning briefing. Dr Eric Yip, Executive Director, Intermediaries, and Ms Elizabeth Wong, Director of Licensing and Head of Fintech unit, gave a comprehensive overview on the competencies expected of these applicants, and walked them through the licence application process.

The SFC also introduced to the applicants its on-site inspection programme, which aims to ascertain their compliance with the relevant regulatory requirements.

The non-contravention period for VATPs operating in Hong Kong under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap 615) (AMLO) came to an end on 1 June 2024. All VATPs operating in Hong Kong must be either licensed by the SFC, or VATP applicants which are deemed-to-be-licensed by operation of the AMLO (Note 1).

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Note:

1. See sections 3 and 4 of Schedule 3G to the AMLO. The SFC issued a statement on 28 May 2024 to remind investors that deemed-to-be-licensed VATP applicants are not formally licensed by the SFC and investors should check the licensing status of VATPs they are dealing with on the SFC’s VATP lists.