Newsletters

On 16 January 2025, the Hong Kong Securities and Futures Commission (HK SFC) announced new regulatory standards for Virtual Asset Trading Platforms (VATPs).

On 16 January 2025, the Hong Kong Securities and Futures Commission (HK SFC) published details of a new streamlined licensing process that now applies to all new applicants for a virtual asset trading platform (VATP) licence in its Circular to New Virtual Asset Trading Platforms Seeking to be Licensed – Enhanced Licensing Process and Revamped External Assessments.

The Hong Kong District Court ordered unlicensed crypto exchange, JPEX, to return 247,498 USDT to two plaintiffs who were unable to withdraw their deposits.

Hong Kong’s SFC closely monitors unauthorised crypto products and activities conducted by entities not regulated by them. As of 8 April 2024, they have listed 27 suspicious crypto products and businesses on their alert list, emphasizing their commitment to investor protection.

The FSTB is proposing to introduce a new licensing regime to regulate providers of over-the-counter trading of virtual assets under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance

The SFC issued circulars providing guidance on the tokenisation of investment products and conduct-related guidance to intermediaries engaging in tokenisation of securities-related activities in Hong Kong.

The Hong Kong police arrested eighteen individuals on charges of suspected fraud in connection with unlicensed crypto exchange JPEX. According to reports, the alleged fraud involved over 2000 victims and resulted in losses of more than HK$1.5 billion. This news followed the Hong Kong Securities and Futures Commission’s (SFC) releasing of two public warnings in September 2023 regarding JPEX’s false claims to be regulated and its involvement in prohibited activities. In this newsletter the details behind the scandal are explored and the current investigation and the potential ramifications of the situation are considered.

Hong Kong is on track to become a global Fintech hub with the HKMA’s announcement of its 2023 Fintech Promotion Roadmap. This roadmap seeks to promote Fintech adoption in the wealth management, insurance and green investment sectors, and the initiative is further supported by the HKMA’s Tech Baseline Assessment and Fintech Adoption Study. In this newsletter the objectives, strategies and implications of the HKMA’s Fintech Promotion Roadmap and how it can help the financial services industry keep up with the rapidly evolving Fintech sector are all explored.

There are a number of existing virtual asset trading platforms (VATPs) operating in Hong Kong. How do existing VATPs comply with Hong Kong’s 2023 AMLO licensing regime? In this newsletter we set out the transitional arrangements that have been put in place to help existing VATPs transition to the new regime, including the deeming arrangement that provides an opportunity for exchanges to become licensed from 31 May 2024. Read on to find out more.

The Hong Kong Monetary Authority (HKMA) released the Access to Banking Services for Corporate Customers circular to facilitate virtual asset service providers (VASPs) to access banking services in the Hong Kong. This came ahead of the implementation of the Hong Kong Securities and Futures Commission (SFC) licensing regime for VASPs on 1 June 2023. By paving the way for licensing applicants to meet the SFC’s requirement for bank account details before approving their licensing applications, the circular seeks to connect VASPs and banks in a transparent and secure manner. Follow this link to read an analysis in which we will take a closer look at the HKMA’s circular and its implications for VASPs in Hong Kong.

The HKMA has announced the commencement of its e-HKD Pilot Programme involving 16 firms across the financial, payment and technology sectors to examine different use cases and design issues.

The SFC has issued a Circular on the implementation of its new AMLO licensing regime for centralised virtual asset trading platform operators which took effect on 1 June 2023