Hong Kong Proposes Rules for Crypto Trading Platforms
Hong Kong's Securities and Futures Commission (SFC) on Monday published its proposed rules for virtual asset trading platforms and is seeking public comment.
Aside from setting up a licensing regime for crypto service providers, the regulator is also seeking views on whether to allow licensed platforms to serve retail investors, and under what investor protection measures these services should be offered, an official notice said.
Under the new regime, all crypto trading platforms planning to apply for a license – including pre-existing platforms – "should begin to review and revise their systems and controls to prepare for the new regime," the notice said.
"Those which do not plan to apply for a license should start preparing for an orderly closure of their business in Hong Kong," it added.
Hong Kong is also planning to regulate stablecoins starting in June this year.
The consultation is open through March 31, while the new licensing regime is set to take effect on June 1.
Read more: No, Hong Kong Won’t Be Allowing Retail Traders Access to Crypto on June 1