As published on finance.yahoo.com, Monday 12 December, 2022.
The Hong Kong Securities and Futures Commission (SFC) is drafting regulatory requirements for the local licensed crypto exchanges, in light of the FTX debacle, according to a report on Monday by Hong Kong public broadcaster RTHK.
The SFC is closely monitoring the crypto industry, and will launch a public consultation in the future, according to RTHK.
The SFC said the bankruptcy of FTX “highlights the risks of retail investors using a virtual asset trading platform that is not fully regulated” and “importance of a regulatory framework that protects investors.”
Hong Kong’s Legislative Council passed amendments to the licensing regime for virtual asset service providers in December, which requires a license for doing crypto business in Hong Kong starting June 2023.
In November, just three days after FTX filed for Chapter 11 bankruptcy, Hong Kong’s Financial Secretary Paul Chan said the region still welcomes the crypto industry and values its innovative features.