Hong Kong’s virtual asset licensing regime to take effect next June

Hong Kong’s Legislative Council passed the modification to the invoice that incorporates a licensing regime for virtual asset company vendors (VASP) on Wednesday, which will come into outcome on June 1, 2023, a few months afterwards than at first planned.  

See relevant article: Hong Kong crypto exchange AAX has missing most employees, not likely to reopen, states former government 

Speedy details

  • The transition time period is meant to give ample time for businesses to implement for the license or go after registrations, according to a governing administration push release.
  • The amended Anti-Funds Laundering and Counter-Terrorist Financing Invoice requires VASPs to acquire a license from the Securities and Futures Fee. 
  • Applicants will have to also go local anti-dollars laundering and counter-terrorist funding scans while complying with regulatory prerequisites on investor defense, which consists of “safe custody of client assets.” 
  • “According to the range of beforehand issued licenses and the transition period of time of the new draft, applicants have to be geared up for a protracted struggle, which may perhaps get additional than a yr to obtain a license,” Wing Tan, chief finance officer at Hong Kong-centered Fore Elite Money Administration told Forkast.
  • Hong Kong lately rolled out the welcome mat for the cryptocurrency marketplace and doubled down on its situation in spite of the implosion of FTX.com, a now-bankrupt cryptocurrency exchange previously primarily based in Hong Kong that has been accused of investing with purchaser resources.
  • This week, three asset administrators utilized for trade-traded money (ETF) that track cryptocurrencies in Hong Kong, in accordance to Nikkei Asia.
  • Meanwhile, Hong Kong-based mostly asset administration firm Pando Finance launched two digital belongings ETFs on Thursday, South China Early morning Write-up documented

See connected post: Unfazed by FTX fiasco, Goldman Sachs eyes investments in crypto market 

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