• February 27, 2024

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Hong Kong Proposes Rules to Regulate Cryptocurrency Platforms

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The Hong Kong Securities and Futures Commission (SFC) has recently launched a public consultation on new requirements for digital asset trading platform operators.

Under the proposed rules, from June 1, 2023, all centralized venues doing business in Hong Kong or interacting with local investors must be licensed by the SFC.

As part of the discussion, the regulator wants to know whether to allow the latter to serve retail customers. In the case of an affirmative answer, the Commission asked to indicate what measures need to be implemented as their additional protection.

The SFC Chair Julia Leung has said:

“In light of the recent turmoil and the collapse of some of the leading crypto trading platforms, there is a clear consensus among regulators around the world to regulate the virtual asset space to ensure adequate investor protection and effective management of key risks.”