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ARTICLE · 15 AUGUST 2023

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Securities And Futures Commission Issues Warning To Virtual Asset Trading Platforms

Winston Taylor
Explore more from Winston Taylor

On August 7, 2023, the Securities and Futures Commission of Hong Kong (SFC) issued a warning to virtual asset trading platforms (VATPs) engaging in "improper practices" under the SFC's new regulatory regime for VATPs.

Hong KongTechnology
Michael J. Blankenship
Michael J. Blankenship
David Cheng
David Cheng
Jacob Botros
Jacob Botros

On August 7, 2023, the Securities and Futures Commission of Hong Kong (SFC) issued a warning to virtual asset trading platforms (VATPs) engaging in "improper practices" under the SFC's new regulatory regime for VATPs. In its statement, the SFC specifically called attention to the potential legal and regulatory consequences associated with false license application claims, established entity non-licensing, and the impacts of current VATP noncompliance on respective future license applications.

As discussed in a previous Non-Fungible Insights post, Hong Kong Launches New Regulatory Regime for Virtual Asset Trading Platform Operations, under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), all VATPs that operate a virtual asset exchange in Hong Kong or actively market their services to Hong Kong investors must be licensed by the SFC. The AMLO's transitional arrangements allow VATPs that provided a virtual asset service in Hong Kong prior

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