Read

JPEX

<p class="is-style-lead">In an Oct. 20 post, the Securities and Futures Commission (SFC) of Hong Kong shared updated guidelines that will supersede the January 2022 joint circular on virtual-asset-related activities.</p>
<p>This comes after the SFC and the HKMA received an increasing number of enquiries from intermediaries about the distribution of these assets.</p>
<h2 class="wp-block-heading" id="following-market-developments">Following market developments</h2>
<p>In 2018, the SFC devised its regulatory framework for virtual assets, introducing a restriction that would limit various activities like the distribution of virtual asset funds to “professional investors only.”&nbsp;</p>
<p>Consequently, as&nbsp;<a target="_blank" href="https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/supervision/doc?refNo=23EC44" rel="noopener noreferrer nofollow">stated in the release</a>, a wider array of investment products have emerged, catering to both retail and professional investors offering exposure to virtual assets. As a result, the SFC has extended permission to SFC-licensed virtual asset trading platforms to serve retail investors, alongside authorization for public offerings of virtual asset futures exchange-traded funds in Hong Kong.</p>
<p>You might also like: <a href="https://crypto.news/hong-kongs-confidence-in-crypto-sours-amid-jpex-scandal/" rel="noopener noreferrer nofollow"> Hong Kong’s confidence in crypto sours amid JPEX scandal </a></p>
<p>After reviewing the industry’s most recent market developments and enquiries, the SFC and the HKMA made policy updates to further expand retail access through intermediaries to allow investors to directly deposit and withdraw virtual assets. The updated requirements go on to classify virtual assets as “complex products”, making them subject to the same guidelines as similar financial products.</p>
<p>That said, the risks associated with investing in virtual assets set in 2018 will continue to apply.</p>
<h2 class="wp-block-heading" id="licensed-to-be-killed">Licensed to be killed</h2>
<p>Just a week earlier, on&nbsp;<a target="_blank" href="https://crypto.news/hong-kongs-regulatory-approach-criticized-as-licensed-to-be-killed/" rel="noopener noreferrer nofollow">Oct. 11</a>, the Vice-President of The Hong Kong University of Science and Technology, Wang Yang, criticized Hong Kong’s current virtual asset regulation. At the time, he highlighted its burdensome and counterproductive nature, which he termed “Licensed to Be Killed.”&nbsp;</p>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
 <div class="wp-block-embed__wrapper"><iframe title="Hong Kong Lets Retail Investors Trade Crypto" width="1020" height="574" src="https://www.youtube.com/embed/wm2jo4DY3FY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
 </div>
</figure>
<p>Despite the regulatory approach going under fire, Hong Kong continues to push forward as a&nbsp;<a href="https://crypto.news/how-hong-kong-became-the-new-hub-for-cryptocurrencies/" target="_blank" rel="noopener noreferrer nofollow">new crypto hub</a>.</p>
<p>Read more: <a href="http://https://crypto.news/osl-owner-denies-reports-of-selling-crypto-business-in-hong-kong/" rel="noopener noreferrer nofollow"> OSL owner denies reports of selling crypto business in Hong Kong </a></p>

Hong Kong regulator updates crypto policies for intermediaries

Table of Contents

crypto.news

Other articles published on Oct 20, 2023

Tesla Q3 2023 Report : No Bitcoin Sales Amidst AI Focus

Alitas (ALT) Price Prediction 2024, 2025, 2030, 2040, and 2050

Hindustan Petroleum embraces blockchain to verify purchase orders

Prosecutors in SBF’s case argue ‘effective altruism’ relevance during the trial

How decentralization can mitigate 'dystopic' artificial intelligence risks: SingularityNET exec

Mengapa Ripple Labs Merasa Menang Lagi Melawan SEC?

Join our free newsletter for daily crypto updates!