The Securities and Futures Commission (SFC) today launched a consultation aimed at restricting unregulated entities from improperly adopting names that may give the public a false impression that they are regulated entities.
To this end, the SFC proposes expanding the current list of restricted titles under the Securities and Futures Ordinance (SFO) to cater for recent developments, including the emergence of virtual asset trading platforms (VATPs) (Note 1).
In parallel, the SFC proposes to include similar restrictions under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), as the VATP regime is set out under both ordinances (Note 2).
Additionally, the proposal will extend the restrictions to commonly used terms that are similar in meaning to “exchange” (eg, “trading platform”) and those that refer to some of the financial products and platforms regulated under the SFO (eg, “virtual assets” and “clearing facilities”). The proposal will also cover titles that may imply an association with established exchanges, VATPs and other similar entities.
The SFC invites the public to submit written comments on the proposals by 11 August 2025 via its website (www.sfc.hk), by email to section34amlo.consultation@sfc.hk, by post or by fax to 2521 7917.
Notes:
- Section 34 of the SFO currently sets out a list of names that cannot be adopted except with the SFC's approval (eg, "stock exchange" and "commodity exchange"). The main aim is to ensure that businesses and operations do not adopt names that may mislead the public into believing they are regulated by the SFC when in fact they are not.
- VATPs that carry on business in Hong Kong, or actively market their services to Hong Kong investors, are required to be licensed and regulated by the SFC. The SFO regulates VATPs providing services for virtual assets that also constitute securities or futures contracts, while the AMLO regulates VATPs offering services for virtual assets that do not constitute securities or futures contracts.
