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News

SFC Hong Kong Will Have Principles For Virtual Asset Exchange To Protect Users

May 31, 2023 - Around 2 mins mins to read

Key Points:

  • The Executive Director of the Securities and Futures Commission (SFC) will develop the virtual asset trading platform guidelines.
  • This principle will make investor protection a top priority.
  • Guidelines for virtual asset trading platform operators in Hong Kong will be enacted in June.
SFC Hong Kong said it had developed guidelines for virtual asset trading platforms, and will take effect in June.
SFC Hong Kong Will Have Principles For Virtual Asset Exchange To Protect Users
Liang Fengyi, Hong Kong Securities and Futures Commission (SFC) chief executive officer

Today, Hong Kong Securities and Futures Commission (SFC) chief executive officer, Liang Fengyi, said it had developed a guide for virtual asset trading platform operators. The stated principle is that investor protection is a top priority.

On the same day, Liang Fengyi attended the outstanding leader’s webinar organized by the Hong Kong Institute of Finance and discussed the development of virtual assets in Hong Kong. Here she said that the Hong Kong Securities Regulatory Commission was criticized when it proposed to oversee the virtual asset trading platform in 2018.

The agency argues that the licensing system requires applicants to meet internal control and investor protection requirements, which will spur fintech firms to operate in Singapore and other places.

The market only understood the significance of these requirements once several offshore virtual asset platforms went bankrupt.

The guidelines for virtual asset trading platform operators in Hong Kong are expected to be effective in June. The CEO of SFC believes that the policies meet market expectations and put investor protection first, such as regulating the safe custody of assets, segregation of client assets, and avoiding conflicts of interest is right. She applauded the Hong Kong SFC as a leading role model for regulators.

SFC Hong Kong Will Have Principles For Virtual Asset Exchange To Protect Users

As was updated in an earlier Coincu News article, HKVAC (Hong Kong Virtual Assets Consortium), a virtual asset rating agency in Hong Kong, officially announced its establishment today. The purpose of the platform is to reflect the reliability of the trading platform while promoting transparency and accountability in the virtual asset trading market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

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