UBS Launches 3 Crypto ETFs in Hong Kong for Investors to Trade ETFs Relating to Bitcoin & Ethereum on Trading Platform, HSBC Launched Crypto ETFs to Clients in Hong Kong in June 2023
17th November 2023 | Hong Kong
UBS has launched 3 crypto ETFs (Exchange Traded Funds) in Hong Kong, allowing investors to trade ETFs relating to Bitcoin & Ethereum on UBS trading platform. In June 2023, HSBC had launched crypto ETFs (Exchange-traded-funds) to clients in Hong Kong, allowing HSBC Hong Kong clients to buy & sell Bitcoin & Ether-based ETFs. Earlier in 2023 June, Hong Kong central bank Hong Kong Monetary Authority (HKMA) had been reported (Financial Times) to hold a meeting in May 2023 with HSBC, Standard Chartered & Bank of China for not accepting crypto exchanges as clients. In 2023 May, Hong Kong Securities & Futures Commission (SFC) had issued new guidelines for “Virtual Asset Trading Platform Operators” will be effective on 1st June 2023 (Thursday), with licensed trading platform operators allowed to serve retail investors. More info below.
“ UBS Launches 3 Crypto ETFs in Hong Kong, Investors Can Trade ETFs Relating to Bitcoin & Ethereum on Trading Platform “
HSBC Launches Crypto ETFs to Clients in Hong Kong, HSBC Hong Kong Clients Can Buy & Sell Bitcoin & Ether-based ETFs
29th June 2023 – HSBC has launched crypto ETFs (Exchange-traded-funds) to clients in Hong Kong, allowing HSBC Hong Kong clients to buy & sell Bitcoin & Ether-based ETFs. Earlier in 2023 June, Hong Kong central bank Hong Kong Monetary Authority (HKMA) had been reported (Financial Times) to hold a meeting in May 2023 with HSBC, Standard Chartered & Bank of China for not accepting crypto exchanges as clients. In 2023 May, Hong Kong Securities & Futures Commission (SFC) had issued new guidelines for “Virtual Asset Trading Platform Operators” will be effective on 1st June 2023 (Thursday), with licensed trading platform operators allowed to serve retail investors. More info below.
Hong Kong Central Bank HKMA Held Meeting in May 2023 with HSBC, Standard Chartered & Bank of China For Not Accepting Crypto Exchanges as Clients, Hong Kong Based-Banks May Face Regulatory Pressures from Global Regulators Including United States
15th June 2023 – Hong Kong central bank Hong Kong Monetary Authority (HKMA) had been reported (Financial Times) to hold a meeting in May 2023 with HSBC, Standard Chartered & Bank of China for not accepting crypto exchanges as clients. Hong Kong based-banks may face regulatory pressures from global regulators including United States. In 2023 May, Hong Kong Securities & Futures Commission (SFC) issues new guidelines for “Virtual Asset Trading Platform Operators” which will be effective on 1st June 2023 (Thursday), with licensed trading platform operators allowed to serve retail investors. More info below. Separately, Binance and Coinbase had been charged by United States regulators for securities violations. United States SEC Files 13 Charges Against Crypto Exchange Binance | United States SEC Charged Crypto Trading Platform Coinbase
Hong Kong SFC New Guidelines for Virtual Asset Trading Platform Operators to be Effective on 1st June 2023, Licensed Trading Platform Operators Allowed to Serve Retail Investors
24th May 2023 – Hong Kong Securities & Futures Commission (SFC) new guidelines for “Virtual Asset Trading Platform Operators” will be effective on 1st June 2023 (Thursday), with licensed trading platform operators allowed to serve retail investors. Hong Kong SFC: “A significant majority of respondents agreed to our proposal to allow licensed trading platform operators to serve retail investors. The SFC will implement a number of robust measures to protect these investors including ensuring suitability in the onboarding process, good governance, enhanced token due diligence, admission criteria and disclosures … … Operators of virtual asset trading platforms who are prepared to comply with the SFC’s standards are welcome to apply for a licence. Those who do not plan to do so should proceed to an orderly closure of their business in Hong Kong. The SFC will continue its efforts with the Investor and Financial Education Council to warn investors about the risks of trading on unregulated platforms. In particular, despite the commencement of the regime on 1 June 2023, the SFC has yet to approve any virtual asset trading platform to provide services to retail investors and most virtual asset trading platforms currently accessible by the public are not regulated by the SFC.” See below for full statement.
Julia Leung Hong Kong SFC CEO: “Providing clear regulatory expectations is the key to fostering responsible development. Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.”
Hong Kong SFC New Guidelines for Virtual Asset Trading Platform Operators to be Effective on 1st June 2023
SFC concludes consultation on regulation of virtual asset trading platforms
23 May 2023 – The Securities and Futures Commission (SFC) today released the Consultation Conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC (Note 1).
During the consultation period, the SFC received 152 written submissions from industry and professional associations, professional and consultancy firms, market participants, licensed corporations, individuals and other stakeholders. Respondents generally welcomed the proposed requirements, while a number of them sought clarifications. Taking into consideration the wide-ranging comments and suggestions provided by respondents, the SFC has modified or clarified some of the proposed requirements.
A significant majority of respondents agreed to our proposal to allow licensed trading platform operators to serve retail investors. The SFC will implement a number of robust measures to protect these investors including ensuring suitability in the onboarding process, good governance, enhanced token due diligence, admission criteria and disclosures.
The Guidelines for Virtual Asset Trading Platform Operators will become effective on 1 June 2023 (Note 2). The Guidelines set out, among others, safe custody of assets, segregation of client assets, avoidance of conflicts of interest and cybersecurity standards and requirements expected of licensed trading platforms. SFC will provide additional guidance on the new regulatory requirements, other implementation details including licence application procedures (Note 3), as well as more information about the transitional arrangements.
Operators of virtual asset trading platforms who are prepared to comply with the SFC’s standards are welcome to apply for a licence. Those who do not plan to do so should proceed to an orderly closure of their business in Hong Kong.
The SFC will continue its efforts with the Investor and Financial Education Council to warn investors about the risks of trading on unregulated platforms. In particular, despite the commencement of the regime on 1 June 2023, the SFC has yet to approve any virtual asset trading platform to provide services to retail investors and most virtual asset trading platforms currently accessible by the public are not regulated by the SFC.
Notes:
- On 20 February 2023, the SFC issued the Consultation Paper on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the SFC. The consultation period ended on 31 March 2023. The proposed regulatory requirements cover safe custody of assets, Know-Your-Client processes, anti-money laundering/counter-financing of terrorism (AML/CFT), avoidance of conflicts of interest, criteria for admitting virtual assets for trading, prevention of market manipulative and abusive activities, accounting and auditing, risk management and cybersecurity.
- On 25 May 2023, the SFC will gazette the Guidelines for Virtual Asset Trading Platform Operators, the Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations and SFC-licensed Virtual Asset Service Providers), the Prevention of Money Laundering and Terrorist Financing Guideline issued by the Securities and Futures Commission for Associated Entities of Licensed Corporations and SFC-licensed Virtual Asset Service Providers, and the Disciplinary Fining Guidelines.
- The SFC will gazette the application forms for virtual asset trading platforms to apply for the relevant licences under the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance on 25 May 2023 and will begin accepting applications on 1 June 2023.
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