Hong Kong Securities and Futures Commission: Drafting regulatory provisions for licensed virtual asset exchanges under the new system

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) stated in an interview with Radio Hong Kong that the FTX bankruptcy protection application has impacted other virtual tokens and the entire industry ecosystem. With the Legislative Council passing the "Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill," the SFC is drafting regulatory provisions for licensed virtual asset exchanges under the new system and will conduct public consultations.

In addition, the SFC reiterated that Hong Kong adopts comprehensive regulation due to the operations of these exchanges being similar to securities brokerage firms, including requiring exchanges to properly segregate client assets in a trust manner, regularly submit audited accounts and financial information, and avoid conflicts of interest.

Previously, it was reported that the Hong Kong Legislative Council passed the amendment to the anti-money laundering and counter-terrorist financing system in the third reading, with the licensing system for virtual asset service providers set to take effect in June next year. (Radio Hong Kong)