Hong Kong: Closed consultation on licensing obligation for all virtual asset trading platforms

On 31 March 2023, the consultation period on a new licensing requirement for all operators of virtual asset trading platforms, opened by the Hong Kong Securities and Futures Commission (SFC) on 20 February 2023, closed. The new licensing requirement would come into effect on 1 June 2023. Companies that do not intend to apply for such a license would have to cease their operations in Hong Kong. As a result, the SFC will then publish a list of all licensed virtual asset trading platforms to inform the general public. The licensing requirement would further be supplemented by other requirements such as the safe custody of assets, Know Your Customer, conflicts of interest, as well as anti-money laundering and cybersecurity measures, among others.