Hong Kong SFC Notifies Investors to Check Regulatory Status of Virtual Asset Trading Platforms Operating in Hong Kong from 1st March 2024, Platforms Without Licence Applications by 29th February 2024 Must Close Businesses in Hong Kong by 31st May 2024, Currently Only 2 Platforms OSL Digital Securities & Hash Blockchain Listed
7th February 2024 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has notified investors to check the regulatory status of virtual asset trading platforms (VATPs) operating in Hong Kong from 1st March 2024, and platforms without licence applications (by 29/2/24) must close businesses in Hong Kong by 31st May 2024. Currently only 2 platforms OSL digital securities and Hash blockchain are listed on the Hong Kong SFC website. Hong Kong SFC: “The Securities and Futures Commission (SFC) wishes to remind investors to trade virtual assets only on SFC-licensed virtual asset trading platforms (VATPs). If they are not certain about the regulatory status of the VATP they are currently dealing with, they can check the SFC’s Lists of virtual asset trading platforms. In particular, investors should check whether a VATP is on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants”. VATPs on the “List of licensed virtual asset trading platforms” are formally licensed by the SFC. VATPs on the “List of virtual asset trading platform applicants” include VATPs operating in Hong Kong which have submitted licence applications to the SFC on or before 29 February 2024. Investors should check the regulatory status of a VATP from time to time and in any event on 1 March 2024. This is because VATPs operating in Hong Kong which have not submitted their licence applications to the SFC by 29 February 2024 MUST close down their businesses in Hong Kong by 31 May 2024 pursuant to the transitional arrangements under the SFC’s regulatory regime for VATPs (Notes 1 and 2). For investors dealing with VATPs operating in Hong Kong which are NOT on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants” (Note 3), they are urged to make preparations early, before 31 May 2024, such as by closing their accounts with these VATPs or transferring to SFC-licensed VATPs for trading virtual assets.
” Hong Kong SFC Notifies Investors to Check Regulatory Status of Virtual Asset Trading Platforms Operating in Hong Kong from 1st March 2024, Platforms Without Licence Applications by 29th February 2024 Must Close Businesses in Hong Kong by 31st May 2024, Currently Only 2 Platforms OSL Digital Securities & Hash Blockchain Listed “
Hong Kong SFC Notifies Investors to Check Regulatory Status of Virtual Asset Trading Platforms Operating in Hong Kong from 1st March 2024
5th February 2024 – The Securities and Futures Commission (SFC) wishes to remind investors to trade virtual assets only on SFC-licensed virtual asset trading platforms (VATPs). If they are not certain about the regulatory status of the VATP they are currently dealing with, they can check the SFC’s Lists of virtual asset trading platforms.
In particular, investors should check whether a VATP is on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants”. VATPs on the “List of licensed virtual asset trading platforms” are formally licensed by the SFC. VATPs on the “List of virtual asset trading platform applicants” include VATPs operating in Hong Kong which have submitted licence applications to the SFC on or before 29 February 2024.
Investors should check the regulatory status of a VATP from time to time and in any event on 1 March 2024. This is because VATPs operating in Hong Kong which have not submitted their licence applications to the SFC by 29 February 2024 MUST close down their businesses in Hong Kong by 31 May 2024 pursuant to the transitional arrangements under the SFC’s regulatory regime for VATPs (Notes 1 and 2).
For investors dealing with VATPs operating in Hong Kong which are NOT on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants” (Note 3), they are urged to make preparations early, before 31 May 2024, such as by closing their accounts with these VATPs or transferring to SFC-licensed VATPs for trading virtual assets.
The SFC, however, reminds the public that the applications submitted by applicants on the “List of virtual asset trading platform applicants” are still being processed and they may – or may not – be approved; hence, trading on these platforms carries a risk (Note 3).
Last but not least, the SFC strongly urges investors to trade virtual assets ONLY on SFC-licensed VATPs because they may leave themselves unprotected by trading on unlicensed platforms.
End
Notes:
- Under Schedule 3G to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap 615) (AMLO), transitional arrangements up to 31 May 2024 are provided to allow sufficient time for VATPs which have been carrying on the business of operating a virtual asset exchange (VA service) as defined under section 53ZR and Schedule 3B to the AMLO in Hong Kong before 1 June 2023 to apply for a licence or to prepare for an orderly close-down of their business operations in Hong Kong. Such VATPs must submit a licence application to the SFC by 29 February 2024 in order to continue operating in Hong Kong on or after 1 June 2024.
- Under the AMLO, it is a criminal offence for VATPs which were not carrying on a business of operating a virtual asset exchange in Hong Kong before 1 June 2023 to carry on their businesses in Hong Kong, or actively market their services to Hong Kong investors on or after 1 June 2023 without a licence. It is also a criminal offence for VATPs which have not submitted a licence application to the SFC by 29 February 2024 to continue operating in Hong Kong on or after 1 June 2024.
- The public should be aware that VATPs on the “List of virtual asset trading platform applicants” are NOT licensed or regulated by the SFC and they may NOT be in compliance with the SFC’s requirements. These VATPs may NOT eventually be granted licences as the SFC may return or refuse their applications. In such cases, these VATPs may be required to close down their businesses in Hong Kong and their names may be placed on the “List of closing-down virtual asset trading platforms”. Investors should thus also check the “List of closing-down virtual asset trading platforms” from time to time.
Hong Kong SFC Released Lists of Virtual Asset Trading Platforms with 2 Licensed Trading Platforms OSL Digital Securities & Hash Blockchain, 4 Submitted Application & 6 Listed as Suspicious
30th September 2023 – The Hong Kong Securities & Futures Commission (SFC) has released the lists of Virtual Asset Trading Platforms (VATPs) with 2 licensed trading platforms OSL Digital Securities & Hash Blockchain, 4 submitted application and 6 virtual platforms listed as suspicious. Hong Kong SFC: “The SFC also issued today a dedicated list of suspicious VATPs on its website to help investors more easily identify suspicious VATPs doing business in Hong Kong and enhance awareness. In particular, investors are reminded that all entities on the List of VATP applicants are not licensed by the SFC and may not be compliant with the SFC’s requirements (Note 5). This list is issued to facilitate the public’s determination of whether a VATP has misrepresented its licence application status (eg, claiming that it has applied for a licence when in fact it has not). VATPs planning to apply for a licence with the SFC are reminded to submit fully completed applications with all the necessary information and documents, including external assessment reports. Substandard applications would be returned by the SFC and the name of the relevant VATP applicant would be removed from the List of VATP applicants and added to the List of removed VATP applicants (Note 6).” View the Virtual Asset Trading Platforms lists | More info below:
Hong Kong SFC Released Lists of Virtual Asset Trading Platforms with 2 Licensed Trading Platforms OSL Digital Securities & Hash Blockchain
29th September 2023 – The Securities and Futures Commission (SFC) published today several lists of virtual asset trading platforms (VATPs) on its website as part of its efforts to disseminate information on VATPs in a clear, transparent and timely manner.
These lists include (Note 1):
- “List of licensed virtual asset trading platforms” (List of licensed VATPs), which sets out the names of VATP operators formally licensed by the SFC (Note 2);
- Starting from today, a “List of virtual asset trading platform applicants” (List of VATP applicants), which sets out the names of VATP operator applicants (VATP applicants) whose licence applications have yet to be approved by the SFC; this list is accompanied by a “List of applicants whose licence applications have been returned, refused or withdrawn” (List of removed VATP applicants), which sets out the names removed from the List of VATP applicants as their licence applications have been returned, refused or withdrawn (Note 3);
- “List of closing-down virtual asset trading platforms” (List of closing-down VATPs), which sets out the names of VATP operators required by law to close down within a specified period; and
- “List of virtual asset trading platforms which are deemed to be licensed” (List of deemed licensed VATPs), which sets out the names of VATP operators deemed to be licensed as of 1 June 2024 (Note 4).
The SFC also issued today a dedicated list of suspicious VATPs on its website to help investors more easily identify suspicious VATPs doing business in Hong Kong and enhance awareness. In particular, investors are reminded that all entities on the List of VATP applicants are not licensed by the SFC and may not be compliant with the SFC’s requirements (Note 5). This list is issued to facilitate the public’s determination of whether a VATP has misrepresented its licence application status (eg, claiming that it has applied for a licence when in fact it has not). VATPs planning to apply for a licence with the SFC are reminded to submit fully completed applications with all the necessary information and documents, including external assessment reports. Substandard applications would be returned by the SFC and the name of the relevant VATP applicant would be removed from the List of VATP applicants and added to the List of removed VATP applicants (Note 6).
Notes:
- The SFC updates the lists regularly but they may not contain the most up-to-date information about VATPs as changes may take place between updates.
- The names of VATP applicants may be transferred from the List of VATP applicants to the List of licensed VATPs if the SFC formally licenses the applicants.
- VATPs on the List of VATP applicants may not eventually be licenced. The names of applicants may be transferred from the List of VATP applicants to the List of removed VATP applicants due to: (a) licence applications being returned by the SFC given incomplete applications and/or unresolved fundamental issues; or (b) licence applications being refused or withdrawn.
- The Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) provides for transitional arrangements to the licensing regime for VATPs whereby eligible VATP applicants are deemed to be licensed on 1 June 2024. Where the licence application of a deemed to be licensed VATP is approved, withdrawn or refused, the name of the VATP will be transferred to either the List of licensed VATPs or the List of closing-down VATPs (as the case may be). The SFC has not vetted the fitness and properness of these deemed to be licensed VATPs, and they may not eventually be licensed.
- Investors should be wary of the risks of trading virtual assets on an unregulated VATP (including any on the List of VATP applicants), and may risk losing their entire investment held on the VATP if it ceases operation, collapses, is hacked or suffers from any misappropriation of assets. Seeking recourse against VATPs without a nexus with Hong Kong may be difficult and legal remedies may not be available.
- By publishing the List of VATP applicants, the SFC does not indicate that: (a) any applicant has met the conditions to be deemed to be licensed; (b) it acknowledges the receipt of any applicant’s licence application; or (c) any applicant may be able to comply with the applicable legal and regulatory requirements. The SFC reserves the right to return or refuse the licence application of any VATP applicant and/or issue a no-deeming notice to it.
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