Unlicensed virtual platforms to be shown the door

Nancy Fei

Unlicensed virtual asset trading platforms will be asked to quit the Hong Kong market by the end of May, said the Securities and Futures Commission.

The list of applicants for the licenses will be updated on the SFC's website today.

SFC chief executive Julia Leung Fung-yee, reminded investors to pay attention to whether the trading platforms operate with a valid license.

She noted that in November 2023, the SFC issued a circular regarding the recognition of tokenized investment products, providing clear guidelines for intermediaries, and private funds involved in tokenized securities activities.

Given the lessons from JPEX last year, financial security regarding virtual assets has become a significant concern for both authorities and the public.

Hong Kong's financial regulators are working on a comprehensive regulatory framework to include virtual asset services providers, said HKMA chief executive Eddie Yue Wai-man.