Hong Kong Financial Services and the Treasury Bureau: No transitional arrangements for virtual asset service providers are in place; currently, 6 platform licenses are pending approval.



On June 2nd, Acting Financial Secretary and Treasury Bureau Head Christopher Hui stated in the Legislative Council that to avoid regulatory ambiguity, Hong Kong will not set up transitional arrangements for existing virtual asset trading service providers.

He urged all institutions engaged in or planning to engage in virtual asset trading, custody, investment advice, and asset management to communicate with regulators as soon as possible and to initiate license application processes in advance.

Christopher Hui also disclosed the licensing status of virtual asset trading platforms in Hong Kong, stating that there are currently 13 licensed virtual asset trading platforms, with license applications from another 6 platforms still under review.

According to regulatory requirements, unless granted an exemption, any institution engaged in virtual asset trading, custody, investment advice, and asset management must obtain a legitimate license.

Regarding the regulatory framework, the proposed new rules will establish corresponding penalties, with enforcement standards consistent with current regulations. The authorities plan to submit relevant amendments to the Legislative Council within this year to further improve the virtual asset regulatory framework.

The Securities and Futures Commission (SFC) Executive Director of Intermediaries, Yip Chi-hang, added that over 200 licenses have already been approved through the existing mechanism. This data reflects the efficiency of Hong Kong’s virtual asset regulatory system and provides compliant operating channels for market participants.

Market data shows that last year, virtual asset-related trading volume in Hong Kong increased by approximately 75% year-on-year, and in the first quarter of this year, trading volume grew threefold year-on-year, indicating ongoing market activity and increasing investor participation.

#HongKongVirtualAssetRegulation
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