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ARTICLE · 20 MARCH 2025

New SFC Circular Streamlines Licensing For Virtual Asset Trading Platforms

Tanner De Witt
Tanner De Witt
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Tanner De Witt

Tanner De Witt

Tanner De Witt is an established independent law firm in Hong Kong. Its primary focus is business...

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This Circular extends an initiative of the SFC for deemed applicants announced in a prior Circular on 18 December 2024[2].

Hong KongTechnology
Padraig Walsh
Padraig Walsh

In this news update, Pádraig Walsh from our Fintech practice group looks at the streamlined licensing process for virtual asset trading platforms (VATPs) introduced for all applicants by the Securities and Futures Commission (SFC) in its 16 January 2025 Circular1.

Streamlined licensing process

This Circular extends an initiative of the SFC for deemed applicants announced in a prior Circular on 18 December 20241. The new Circular revamps the external assessment process for VATP applicants whose applications are submitted to the SFC after 18 December 2024. The goal is to expedite the licensing process without sacrificing regulatory standards.

The revamped process primarily relates to the external assessment which is at the core of the VATP licensing process. Previously, the external assessment was conducted in two phases. This has been replaced by a single external assessment review under a tripartite arrangement between the VATP applicant, the SFC and the

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