Hong Kong: Announced deadline for VASPs application for license under the AML/CFT Act

On 2 February 2023, the Financial Services and Treasury Bureau of Hong Kong announced that all unlicensed Virtual Asset Service Providers (VASPs) are required to submitt their application for an operational license, as required under the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Act 2022, by 29 February 2024 when the transitional period established to assist existing VASPs to transition into the new regime ends. The authority will evaluate whether the applicants meet the regulatory requirements and if they had substantial operations in Hong Kong before the commencement of the licensing system to decide if they will be deemed as licensed from 1 June 2024, until a final decision is made on their applications. In addition, If the authority considers that the VASPs do not comply with the requirements of the transitional arrangement, a “No-deeming notice” will be issued. Finally, all existing VASPs that do not submit their application by 29 February or have received a “No-deeming notice”, must begin to cease their operations and complete it by 31 May 2024 or within three months form the issuance of the notice.