1 year ago
Hong Kong's Securities and Futures Commission (SFC) volition statesman accepting applications for crypto trading level licenses connected June 1, according to a Tuesday announcement.
The regulator has agreed to let licensed virtual plus providers to service retail investors, provided that operators measure knowing of the risks involved, according to a study connected its consultation connected argumentation recommendations released Tuesday. The SFC opened its initial argumentation recommendations to nationalist feedback successful February.
The rulebook explicitly bans crypto "gifts," designed to incentivize retail customers to put – which apt includes airdrops.
The guidelines, immoderate of which were changed based connected nationalist feedback, spot the onus squarely connected level operators to behaviour owed diligence, stressing that being included successful 2 acceptable indices is conscionable the minimum criterion for being listed for trading.
Under the rules, crypto exchanges are to support astatine each times nary little than 5,000,000 Hong Kong dollars ($640,00) successful capital, and astatine the extremity of each month, taxable the platform's disposable and required liquid capital, a summary of slope loans, advances, recognition facilities arsenic good arsenic a nett and nonaccomplishment investigation to the SFC.
The papers besides provides much item connected allowing retail investors to usage trading platforms and connected conducting owed diligence connected token listing. All tokens listed connected exchanges volition request to spell done owed diligence procedures earlier being listed connected exchanges adjacent if they are already listed connected different platform. They volition person to spell done astute declaration audits by autarkic assessors. Platform operators volition not request to name autarkic outer members to token reappraisal committees truthful agelong arsenic they adequately woody with conflicts of interests, according to the conclusions.
The SFC volition let platforms to segregate lawsuit and its ain assets done an escrow statement oregon via the licensed level mounting funds aside. Client virtual assets should beryllium afloat covered by each platform's compensation arrangement.
In effect to suggestions that third-party custodians could beryllium engaged to safe-keep lawsuit assets, the SFC replied that since determination is nary regulatory authorities for custodians of virtual assets, allowing that would hinder their supervision and enforcement.
The SFC said it volition consult a abstracted reappraisal connected allowing derivatives, which it acknowledges are precise important to organization investors.
On implementing the Financial Action Task Force's (FATF) question regularisation for sharing accusation connected crypto transactions betwixt fiscal institutions, the SFC said that erstwhile required accusation cannot beryllium submitted to the beneficiary instauration close away, it volition judge submission arsenic soon arsenic practicable aft the virtual plus transportation until January 1, 2024.
The guidelines besides see clarifications connected anti-money laundering requirements and criteria for fining platforms for breaching them.
The revised guidelines travel into unit connected June 1.
Edited by Sandali Handagama.
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