The incoming rules for digital asset service providers are expected to come into effect on June 1, but the Securities and Futures Commission is yet to give the nod to any exchange to cater to the retail market.
Hong Kong’s Securities and Futures Commission granted OSLASM the license in early May, giving the green light to the firm to carry out Types 1, 4, and 9 regulated activities in the region.
Julia Leung, head of the Hong Kong Securities and Futures Commission, said digital currency platforms are integral to the blockchain industry, requiring tighter regulations.
Many may see Hong Kong's latest regulation as a welcoming to digital asset exchanges, but the stringent requirements for licenses and compliance seem to tell otherwise.
The job cuts at the start of 2022 are not stopping Huobi from expanding into other markets, as it bares its plan to apply for a trading license in Hong Kong and create a new entity.
Hong Kong’s SFC has asked the public for opinions on whether centralized digital currency exchanges in the country should be allowed to serve retail customers and what regulations to implement.
Securities and Futures Commission Chairman Tim Lui said that the commission would be open to hiring individuals from both Mainland China and foreigners should the need arise.
The new trading restriction will take effect once the new licensing regime for digital assets passes in June.
The application for the new licensing requirement is expected to start on June 1, but the Securities and Futures Commission has yet to clarify its plan to expand the rules to include retail investors.
The Securities and Futures Commission clarified that it doesn’t regulate the industry and urged caution from investors, reminding them they risk losing all their money amid FTX collapse.
Hong Kong’s lawmakers passed an amendment to the city’s AML laws that takes effect on July 1, bringing VASPs under the purview of the SFC for the first time.
For now, only BTC and ETH futures can be listed, but the Securities and Futures Commission states that it is mulling over a potential expansion of the scope of virtual asset futures.
