Hong Kong’s virtual asset licensing regime to take effect next June

Italy Bans Facial Recognition Tech… Except For Cops

Hong Kong’s Legislative Council passed the amendment to the bill that includes a licensing regime for virtual asset service providers (VASP) on Wednesday, which will come into effect on June 1, 2023, three months later than initially planned.  

See related article: Hong Kong crypto exchange AAX has lost most staff, unlikely to reopen, says former executive 

Fast facts

  • The transition period is intended to give sufficient time for businesses to apply for the license or pursue registrations, according to a government press release.
  • The amended Anti-Money Laundering and Counter-Terrorist Financing Bill requires VASPs to obtain a license from the Securities and Futures Commission. 
  • Applicants must also pass local anti-money laundering and counter-terrorist financing scans while complying with regulatory requirements on investor protection, which includes “safe custody of client assets.” 
  • “According to the number of previously issued licenses and the transition period of the new draft, applicants have to be prepared for a protracted battle, which may take more than a year to gain a license,” Wing Tan, chief finance officer at Hong Kong-based Fore Elite Capital Management told Forkast.
  • Hong Kong recently rolled out the welcome mat for the cryptocurrency industry and doubled down on its position despite the implosion of FTX.com, a now-bankrupt cryptocurrency exchange formerly based in Hong Kong that has been accused of trading with customer funds.
  • This week, three asset managers applied for exchange-traded funds (ETF) that track cryptocurrencies in Hong Kong, according to Nikkei Asia.
  • Meanwhile, Hong Kong-based asset management company Pando Finance launched two virtual assets ETFs on Thursday, South China Morning Post reported

See related article: Unfazed by FTX fiasco, Goldman Sachs eyes investments in crypto market 

Leave a Reply