Hong Kong brokers line up for SFC approval ahead of new virtual asset trading legislation

Monetary companies suppliers in Hong Kong are already taking the primary steps to supply companies to retail buyers, in keeping with native reports. Brokers and fund managers within the area have reportedly requested for recommendation on licensing necessities forward of latest laws.

Lawmakers in Hong Kong handed an modification to the Anti-Cash Laundering and Counter-Terrorist Financing Ordinance (AMLO) in December 2022, which aligns with the area’s latest stance on broadening the chance for crypto buying and selling.

The modification introduces a brand new licensing scheme for digital asset service suppliers, which is able to permit retail buyers the power to commerce in digital belongings. Presently, digital asset buying and selling is restricted to skilled buyers or merchants with proof of no less than $1 million in bankable belongings.

Victory Securities and Interactive Brokers have been the primary two brokers in Hong Kong with SFC to commerce digital belongings for his or her skilled shoppers.

In response to Robert Lui, the digital asset chief at Deloitte Hong Kong, retail buyers will most probably have the ability to commerce digital belongings with a big market capitalization and liquidity.

Presently Hong Kong-based brokers don’t want particular licence to service shoppers buying and selling Hong Kong-listed exchange-traded fund futures primarily based on Bitcoin (BTC) and Ether (ETH). Although, these which is able to present digital asset buying and selling will want further SFC approval. 

The brand new licensing was initially scheduled for Mar.1 of this yr, nonetheless the date was then pushed till Jun. 1 with a view to give digital asset service suppliers extra time to precisely put together. 

Associated: Crypto makes historical past in 2022: 5 cases of governments embracing digital belongings

This comes after the SFC lately appointed Julia Leung as its new chief government. Leung began her time period on Jan. 1 and is ready to be in workplace for the subsequent three years. She has beforehand spoken out about tightening native crypto rules. 

An government from the Central Financial institution of Hong Kong additionally lately stated it was trying into investor safety rules. 

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