The SFC of Hong Kong revealed that Virtual Asset Trading Platforms (VATPs) operating in Hong Kong will be required to be licensed under the provisions of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) starting mid-this year.
This regulatory change requires VATPs to either be licensed by the SFC or qualify as “deemed-to-be-licensed” applicants. Operating without compliance is a criminal offense, and strict action is promised against any violations.
The SFC’s website lists all licensed VATPs, urging investors to verify platforms’ licensing status before engaging in trades. Additionally, these platforms are under review and must prove their adherence to the SFC’s stringent requirements, including effective implementation of policies and systems.
This move comes as the SFC focuses on enhancing investor protection and market stability by ensuring platforms comply with essential regulations. The agency plans to perform on-site inspections to ensure compliance, particularly in client asset safeguarding and KYC processes.
Failure to meet the SFC’s standards will result in the refusal of licensing applications, and platforms may have to cease operations in Hong Kong. The SFC emphasizes the temporary nature of the deeming arrangement, aiming to foster market development while ensuring investor safety.
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