Hong Kong’s Securities and Futures Commission (SFC) reminds industry participants and investors that the deadline of 29 February 2024 has passed for virtual asset trading platforms (VATPs) to apply for a licence.
As a result, VATPs that operate in Hong Kong but have not submitted license applications to the SFC by the 29 February 2024 deadline must close their Hong Kong operations by 31 May 2024 under the transitional arrangements.
These VATPs must obtain the required SFC license in order to continue their business activities in Hong Kong or actively market their virtual asset services to Hong Kong investors. It is a criminal offense to carry out any activity without a licence.
At the same time, investors are advised to check the VAT regulatory status in the lists of virtual asset trading platforms on the SFC website.
Investors dealing with VATPs operating in Hong Kong who are not on the “List of Licensed Virtual Asset Trading Platforms” or the “List of Virtual Asset Trading Platform Applicants” are requested to close their accounts with these VATPs or transfer to VATP licensed by the SFC to deal in virtual assets.
The SFC, however, reminds the public that applications submitted by applicants to the ‘List of Virtual Asset Trading Platform Applicants’ are still being processed and may – or may not – be approved. Therefore, trading on these platforms involves risk.
In this case, 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.