SFC outlines new plans for virtual asset regulation in Hong Kong
The SFC, in conjunction with the Hong Kong Government, aims to establish frameworks for trading services and token custody.
At Fintech Week 2024, Dr Eric Yip of Hong Kong’s Securities and Futures Commission (SFC) announced key steps to streamline licencing for virtual asset trading platforms (VATPs). With fourteen platforms currently operating under ‘deemed-to-be-licensed’ status, the SFC plans to expedite full licencing by the end of this year through on-site inspections and close cooperation with platform leaders to maintain transparency and compliance.
The SFC will also establish a consultative panel in early 2025 to boost regulatory cooperation. This panel will include representatives from each licensed VATP and aim to foster dialogue between industry stakeholders and the SFC, with insights contributing to a white paper on upcoming regulatory priorities.
Alongside licencing efforts, the SFC will work with the Hong Kong Government and other agencies to establish frameworks for trading services and token custody. The SFC is also backing Project Ensemble, a tokenisation initiative by the Hong Kong Monetary Authority, aiming to set standards for tokenised asset settlement in the finance sector. Dr Yip highlighted the regulator’s commitment to investor protection and market growth through a ‘pragmatic and proactive approach.’
