Hong Kong: Consultation results include licensing regime for virtual asset services providers

The consultation carried out by the Financial Services and the Treasury Bureau from November 3, 2020 to January 31, 2021 includes a legislative proposal to require operators of virtual asset trading platforms to be licensed by the Securities and Futures Commission. As a consequence, only Hong Kong incorporated companies could apply for said license and failure to apply for one would result in an exclusion from running virtual asset exchange services in Hong Kong or actively marketing said services in Hong Kong. The aforementioned legislative proposals also include a two-tier registration process for dealers of precious metals and stones as well as different technical amendments in the anti-money laundering and counter-terrorist financing ordinance.