On 6 November 2019, the Security and Futures Commission
(SFC) issued a position paper setting out a new regulatory
framework for the licensing of centralised virtual asset trading
platforms, following the SFC's
conceptual framework issued last year.
The SFC's CEO, Ashley Alder, made clear in his speech at Hong Kong FinTech Week that the new
framework is intended to be "principles-based and technology
neutral", applying consistent principles of investor
protection in order to encourage "FinTech to flourish in a way
that promotes a high level of confidence in all who
participate". The new framework is comparable to the
regulatory standards for licensed security brokers and automated
trading venues, adapted to deal specifically with the technology on
which the virtual asset trading platform industry is based.
