Hong Kong’s Securities and Futures Commission (SFC) on Monday published its proposed rules for virtual asset trading platforms and is seeking public comment. Aside from setting up a licensing regime for crypto service providers, the regulator is also seeking views on whether to allow licensed platforms to serve retail investors, and under what investor protection measures these services should be offered, an official notice said. Under the new regime, all crypto trading platforms planning to apply for a license – including pre-existing platforms – “should begin to review and revise their systems and controls to prepare for the new regime,” the notice said. “Those which do not plan to apply for a license should start preparing for an orderly closure of their business in Hong Kong,” it added. Hong Kong is also planning to regulate stablecoins starting in June this year. The consultation paper published on Monday sets out proposed requirements, like assessing clients’ risk profile and setting limits to ensure their exposure is “reasonable.” Under the proposed measures, it will be up to operators to do due diligence on tokens, and monitor them. That includes assessing the regulatory status of the asset in each jurisdiction in which the operator provides trading services. It also proposes checks on the operator’s liquidity and whether its holdings are concentrated or controlled by a small number of individuals or entities.
Full story : Hong Kong Proposes Rules for Crypto Trading Platforms.
