Hong Kong: Securities and Futures Commission adopted revised licensing process for virtual asset trading platforms

On 18 December 2024, the Securities and Futures Commission (SFC) issued a circular outlining a revamped licensing process and second-phase Assessment for virtual asset trading platforms (VATPs). The circular introduces a new approach wherein VATPs must complete a rectification plan, undergo independent penetration tests and vulnerability assessments. It also requires VATPs to submit revised policies, procedures, systems, and controls (P&P) for evaluation. The SFC will supervise the entire process, including the involvement of an External Assessor (EA), to ensure compliance with regulatory standards, including anti-money laundering requirements.