Hong Kong Virtual Asset Regulation Accelerates SFC Accepted Virtual Asset Trading Platform License Application From Huobi Tech’s Subsidiary

 

Hong Kong Virtual Asset Regulation Accelerates SFC Accepted Virtual Asset Trading Platform License Application From Huobi Tech’s Subsidiary

 

 

In late June, the Hong Kong Government gazetted the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 (the Amendment Bill) and introduced it into the Legislative Council for First Reading on July 6. The Amendment Bill seeks to introduce a licensing regime for virtual asset service providers and a registration regime for dealers in precious metals and stones. In related news, the licensing of virtual asset service providers continues to progress, with the Hong Kong Securities and Futures Commission (HKSFC) recently formally accepting applications for Type 1 (securities trading) and Type 7 (provision of automated trading services) licenses from Huobi Services Limited, a subsidiary of Huobi Technology Holdings Limited (“Huobi Tech”, Stock Code: 1611.HK).

 

The Amendment Bill seeks to strengthen the anti-money laundering and terrorist financing regulatory regime in Hong Kong. Institutions operating virtual asset exchanges will be required to obtain a license from the HKSFC and will be required to meet fit and proper criteria and comply with anti-money laundering and terrorist financing requirements and other regulatory requirements.

 

As virtual assets have received increasing market attention in recent years, Hong Kong, as an international financial center, has been accelerating the establishment of a regulatory framework. The clarity of the regulatory framework plays a key role in protecting investors, ensuring the safety of asset custody and market integrity, and is the foundation for the long-term healthy development of the virtual asset industry.

 

As early as 2019, HKSFC introduced virtual asset regulatory sandbox, which allows virtual asset trading platforms that meet the prescribed requirements to apply for a license to conduct Type 1 (securities trading) and Type 7 (provision of automated trading services) regulated activities for the provision of virtual asset trading services. It has a positive impact on the development of the virtual asset industry in Asia and globally.

 

Huobi Tech is a compliant leading one-stop virtual asset service platform. Since the HKSFC announced the virtual asset licensing regime, a subsidiary of Huobi Tech, has been actively preparing for the license application, and has recently received a formal acceptance from the HKSFC. According to the data released by the Hong Kong Financial Services and the Treasury Bureau, since the introduction of virtual asset regulatory sandbox in 2019, only four applications have been formally accepted by the HKSFC as of March last year, which shows that the threshold for preliminary preparation and application requirements is high. Since its inception, Huobi Tech has been taking a proactive approach to regulation and leading the industry’s compliance development. The HKSFC’s acceptance of the license application will further strengthen Huobi Tech’s confidence in its future development.