The Securities and Futures Commission (SFC) wishes to remind investors to trade virtual assets only on SFC-licensed virtual asset trading platforms (VATPs). If they are not certain about the regulatory status of the VATP they are currently dealing with, they can check the SFC’s Lists of virtual asset trading platforms.
In particular, investors should check whether a VATP is on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants”. VATPs on the "List of licensed virtual asset trading platforms” are formally licensed by the SFC. VATPs on the “List of virtual asset trading platform applicants” include VATPs operating in Hong Kong which have submitted licence applications to the SFC on or before 29 February 2024.
Investors should check the regulatory status of a VATP from time to time and in any event on 1 March 2024. This is because VATPs operating in Hong Kong which have not submitted their licence applications to the SFC by 29 February 2024 MUST close down their businesses in Hong Kong by 31 May 2024 pursuant to the transitional arrangements under the SFC’s regulatory regime for VATPs (Notes 1 and 2).
For investors dealing with VATPs operating in Hong Kong which are NOT on the "List of licensed virtual asset trading platforms” or on the "List of virtual asset trading platform applicants” (Note 3), they are urged to make preparations early, before 31 May 2024, such as by closing their accounts with these VATPs or transferring to SFC-licensed VATPs for trading virtual assets.
The SFC, however, reminds the public that the applications submitted by applicants on the "List of virtual asset trading platform applicants” are still being processed and they may – or may not – be approved; hence, trading on these platforms carries a risk (Note 3).
Last but not least, the SFC strongly urges investors to trade virtual assets ONLY on SFC-licensed VATPs because they may leave themselves unprotected by trading on unlicensed platforms.
Notes:
- Under Schedule 3G to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap 615) (AMLO), transitional arrangements up to 31 May 2024 are provided to allow sufficient time for VATPs which have been carrying on the business of operating a virtual asset exchange (VA service) as defined under section 53ZR and Schedule 3B to the AMLO in Hong Kong before 1 June 2023 to apply for a licence or to prepare for an orderly close-down of their business operations in Hong Kong. Such VATPs must submit a licence application to the SFC by 29 February 2024 in order to continue operating in Hong Kong on or after 1 June 2024.
- Under the AMLO, it is a criminal offence for VATPs which were not carrying on a business of operating a virtual asset exchange in Hong Kong before 1 June 2023 to carry on their businesses in Hong Kong, or actively market their services to Hong Kong investors on or after 1 June 2023 without a licence. It is also a criminal offence for VATPs which have not submitted a licence application to the SFC by 29 February 2024 to continue operating in Hong Kong on or after 1 June 2024.
- The public should be aware that VATPs on the "List of virtual asset trading platform applicants” are NOT licensed or regulated by the SFC and they may NOT be in compliance with the SFC’s requirements. These VATPs may NOT eventually be granted licences as the SFC may return or refuse their applications. In such cases, these VATPs may be required to close down their businesses in Hong Kong and their names may be placed on the "List of closing-down virtual asset trading platforms”. Investors should thus also check the "List of closing-down virtual asset trading platforms” from time to time.
