Hong Kong Securities and Futures Commission issued a "Warning on Virtual Asset Futures Contracts" and a "Position Paper: Regulating Virtual Asset Trading Platforms"

The Hong Kong Securities and Futures Commission issued a "Warning on Virtual Asset Futures Contracts" and a "Position Paper: Regulating Virtual Asset Trading Platforms".

The SFC is empowered to grant licenses to persons carrying on “regulated activities” as defined in the Securities and Futures Ordinance.

Under the regulatory framework, if a platform operator operates a central online trading platform in Hong Kong and provides trading of at least one security token on its platform, it will fall under the jurisdiction of the SFC and must obtain licenses for Type 1 (securities trading) and Type 7 (providing automated trading services) regulated activities.

The SFC may grant a licence to a qualified platform operator to operate a virtual asset trading business provided that the operator meets other licensing requirements (including the fit and proper person criteria).

Attachment: Position Paper: Regulating Virtual Asset Trading Platforms