ChainCatcher news, Hong Kong is currently exploring whether to involve the Securities and Futures Commission (SFC) and the Hong Kong Customs and Excise Department (C&ED) in regulating over-the-counter (OTC) services for virtual assets.According to informed sources, the Hong Kong Securities and Futures Commission has sought industry opinions on possibly implementing a new licensing system for cryptocurrency OTC services, which would allow the securities regulator to collaborate with C&ED to oversee these companies, as the discussions are private. According to a proposal made public in February, the planned OTC regulations and licenses were previously the sole domain of C&ED. OTC services facilitate direct and private large-scale cryptocurrency transactions between parties.Informed sources also indicated that in recent months, the Hong Kong SFC has consulted companies about introducing a new licensing system for cryptocurrency custody services. They stated that discussions regarding these two licenses are still in the early stages and may change.

ChainCatcher news, the Hong Kong Securities and Futures Commission held a briefing for applicants of virtual asset trading platforms on June 12, 2024. More than 60 participants attended, including representatives and advisors of applicants considered for licensing.Dr. Yip Chi-hang, Executive Director of the Intermediaries Division of the Securities and Futures Commission, and Ms. Wong Lok-yan, Director of the Licensing Division and Head of the Fintech Group, outlined the competencies that these applicants should possess and explained the licensing application process as well as introduced their on-site inspection procedures.

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) recently announced that it will conduct on-site office inspections of cryptocurrency platforms applying for licenses.The regulator emphasized that the 18 applicants "deemed to have obtained a license" will be required to undergo inspections to obtain approval for their applications. These inspections will take place in the coming months, during which the deemed licensed VATP applicants will submit their applications. The on-site inspections will focus on the cryptocurrency platforms' protection of customer assets and Know Your Customer (KYC) processes to determine whether the companies meet the SFC's regulatory requirements.The regulator also reminded applicants that during the application process, they must comply with all regulatory requirements and licensing conditions set by the SFC. These conditions include prohibiting residents of mainland China from accessing the platform's virtual asset-related services, marketing their services, or attracting retail users.

ChainCatcher news, according to CoinDesk, Hong Kong asset management company VSFG and Value Partners have applied to the Hong Kong Securities and Futures Commission (SFC) for a Bitcoin spot ETF.

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) has issued a circular titled "On the SFC's Recognition of Tokenization of Investment Products." The SFC believes that it is appropriate to allow primary trading of tokenized investment products authorized by the SFC, provided that these products can meet all applicable product authorization requirements and additional safeguards to address issues, through a transparent approach.The circular points out that secondary trading of tokenized investment products authorized by the SFC will be considered more cautiously and carefully, in order to provide a level of investor protection that is fundamentally similar to that for investors in non-tokenized products. These considerations include maintaining appropriate and timely records of token ownership, the readiness of trading infrastructure and market participants to support liquidity, and fair pricing of tokenized products. Additionally, product providers of tokenized investment products recognized by the SFC must ensure that the underlying products comply with the applicable requirements of relevant rules, regulations, and product codes (including the qualifications of product providers, product structure, investment and operational requirements, disclosure, and ongoing compliance obligations).Furthermore, new investment products with tokenization features that plan to seek SFC approval must consult the SFC in advance. Tokenization of existing investment products authorized by the SFC also requires prior consultation.

ChainCatcher news, Slow Mist announced the launch of HKSFC compliance security audit services. Currently, the Slow Mist security team has provided services for several cryptocurrency trading platforms in Hong Kong applying for licenses, including: HashKey Pro, which has completed its licensing, HKBGE, which is in the process of applying, and MEEX, which plans to apply.The Slow Mist security team has developed compliance security audit items for HKSFC based on the latest requirements from HKSFC and OWASP international standards. Additionally, security audit items for Web, iOS, and Android have been organized according to OWASP international standards and Slow Mist's exclusive security capabilities, ensuring that the project parties meet HKSFC requirements while also aligning with OWASP international standards.

ChainCatcher news, Hong Kong digital asset platform OSL announced on its official website that it has applied to the Hong Kong Securities and Futures Commission (SFC) for an upgrade of its existing license to conduct retail trading under the new regulatory requirements (effective from June 1, 2023). The license upgrade will allow OSL to provide virtual asset trading services to retail investors and comply with strict investor protection measures. (Source link)

ChainCatcher news, the Hong Kong Special Administrative Region Government's Invest Hong Kong has announced that the Securities and Futures Commission (SFC) will officially implement a new licensing regime for virtual asset service providers on June 1. However, a transition period will be provided for virtual asset trading platforms that are already operating in Hong Kong.For those platforms that have been operating in Hong Kong and have meaningful and substantive business transactions before June 1, 2023, including operators of licensed platforms under the Securities and Futures Ordinance and applicants for virtual asset trading platforms conducting business with non-security tokens under the Securities and Futures Ordinance, they are eligible to participate in the transition arrangements. They must also meet the conditions listed in Schedule 3G of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 to continue operating in Hong Kong from June 1, 2023, to May 31, 2024, and will be subject to the licensing regime for virtual asset service providers starting from June 1, 2024.Companies planning to provide virtual asset services in Hong Kong after June 1, 2023, must apply to the SFC for a license in advance. Once the licensing regime for virtual asset service providers is officially implemented, the SFC will regulate securities-type token exchanges conducted by virtual asset exchanges under the Securities and Futures Ordinance, and will also regulate non-securities-type token exchanges conducted by virtual asset exchanges under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022. (Source link)

ChainCatcher news, Michael Wong, a partner at Dechert LLP, stated that since the Hong Kong Securities and Futures Commission (SFC) issued guidelines in 2019, 10 fund managers in Hong Kong have upgraded their licenses to manage cryptocurrencies. With the necessary Type 9 (Asset Management) license, fund managers will be able to allocate 10% of their total managed assets to the digital asset space. (Source link)

ChainCatcher news, the acting head of the Intermediaries Division of the Hong Kong Securities and Futures Commission, Choi Chung-fai, stated today at the "2023 Hong Kong Web3 Carnival" that DeFi projects need to be regulated by the SFC, and automated trading services also fall under SFC regulation. Decentralized exchanges that involve virtual assets also need to apply for a license. Some DeFi protocols are nominally decentralized, but in reality, a small number of developers hold a large amount of governance tokens, and it is necessary to analyze their substance rather than just their superficial claims. (Source link)