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 submit licence applications.
As a result, VATPs that are operating in Hong Kong but did not submit licence applications to the SFC by the 29 February 2024 deadline must close down their businesses in Hong Kong by 31 May 2024, pursuant to the transitional arrangements.
These VATPs must obtain the requisite SFC licence in order to resume their business activities in Hong Kong, or actively market their virtual asset services to Hong Kong investors. It is a criminal offence to carry on any unlicensed activity.
At the same time, investors are urged to check the regulatory status of VATPs on the Lists of virtual asset trading platforms on the SFC’s website.
Investors dealing with VATPs operating in Hong Kong which are not on the “List of licensed virtual asset trading platforms” or on the “List of virtual asset trading platform applicants” are urged to close their accounts with these VATPs or transfer to SFC-licensed VATPs for trading virtual assets.
The SFC, however, reminds the public that the applications submitted by applicants on the “List of virtual asset trading platform applicants” are still being processed and they may – or may not – be approved. Hence, trading on these platforms carries a risk.
That being the 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.
