SFC proposes limiting unlicensed virtual asset platforms from using misleading names

Hong Kong’s securities regulator proposed restricting unregulated entities from using misleading names to protect investors, especially for virtual asset trading platforms.

The Securities and Futures Commission launched a consultation on the restriction today, targeting the improperly adopted names that would give the public a false impression that they are regulated entities.

SFC also proposes expanding the current list of restricted titles under the Securities and Futures Ordinance to cater for recent developments, including the emergence of virtual asset trading platforms, and adding similar restrictions to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, as the VATP regime is set out under both ordinances.

The proposal will extend the restrictions to commonly used terms that are similar in meaning to “exchange” and those that refer to some of the financial products and platforms, such as “virtual assets” and “clearing facilities”.

The proposal will also cover titles that may imply an association with established exchanges, VATPs and other similar entities.

The consultation will end on August 11, 2025.

STAFF REPORTER