In response to the surging passion in virtual asset (VA)-related merchandise and companies, Hong Kong’s regulatory authorities, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA), have launched a sequence of critical measures aimed at bolstering investor protection and making certain the responsible operation of the market.
Certainly one of many primary targets of those updates is to present additional safeguards for investors participating in VA-related activities. To achieve this, SFC and HKMA have carried out several key measures:
Sales Regulations and Talent Checking out:
SFC and HKMA are now strongly emphasizing the implementation of extra measures for VA sales. These measures include the introduction of sales regulations and the requirement for non-institutional and non-qualified corporate professionals to pass a virtual asset talent exam.
Regulatory Requirements for VA Trading Platforms:
The SFC has unveiled recent regulatory and licensing requirements for virtual asset trading platform operators (VATPs). These requirements are accompanied by transitional arrangements underneath the latest licensing regime, designed to enhance transparency and accountability within the VA trading sector.
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Proscribing Virtual Asset Trading:
Starting from June 1, 2023, the recent VATP regulations will advance into accomplish, addressing the complexities of shopping for and promoting virtual assets. The regulations are intended to be certain that corporations operating within the industry adhere to regulatory standards. Additionally, promoting virtual asset-related merchandise can be shrimp to skilled investors, enhancing investor protection. Operators also have the chance to apply for dual licenses underneath each VATP and the present Securities and Futures Ordinance (SFO) regime.
Virtual Asset-Information Check:
Intermediaries engaged in VA transactions can be required to administer a “virtual asset-data check” to customers except customers have undergone satisfactory training. This measure aims to pork up retail access whereas enforcing safeguards to provide protection to customers. Professional investors are exempt from this talent check requirement.
The latest regulatory updates by SFC and HKMA underscore their commitment to fortifying investor protection measures all via the virtual asset industry. These changes foster responsible and informed investing practices, enhance market integrity, and be certain that Hong Kong’s financial markets remain steady and transparent.
The importance of a strong regulatory framework cannot be overstated as the virtual asset sector continues to journey rapid growth and diversification. These measures will abet as a vital foundation for maintaining investor belief and market stability.
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