19/02/24

Virtual Asset Trading Platforms in Hong Kong

In our previous IFC Review article, ‘How Will Hong Kong’s New Virtual Asset Licensing Regime Affect The Industry?’, we looked at the new licencing requirement for persons carrying on the business of providing a virtual asset service (VAS) in Hong Kong, namely the operators of virtual asset trading platforms (VATPs), which became effective on 1 June 2023. Under that licencing regime, the SFC was granted authority to regulate VATPs in relation to their businesses, involving both security and non-security tokens under respectively the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).