Circular on implementation of new licensing regime for virtual asset trading platforms

In view of the coming into force of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance 2022 on June 1, 2023, the Securities and Futures Commission of Hong Kong, SFC, has published a Circular addressed at virtual asset trading platforms and virtual asset service providers (VASPs) in relation to their new licensing and business requirements.
Specifically, the circular summarizes some key information and documents available for platform operators and intermediaries as regards the new licensing regime primarily to support them in complying with their new obligations. The Circular thereby specifically refers to the following documents:
– The SFC Guidelines for Virtual Asset Trading Platform Operators
– The Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (For Licensed Corporations and SFC-licensed Virtual Asset Service Providers)
– Prevention of Money Laundering and Terrorist Financing Guideline issued by Commission for Associated Entities of Licensed Corporations and SFC-licensed Virtual Asset Service Providers
– FAQs on licensing related matters
– FAQs on conduct related matters
– The Licensing Handbook for Virtual Asset Trading Platform Operators (VATP Licensing Handbook)
Additionally, the SFC notes that it has created a dedicated e-mail address for licensing inquiries at: vatp-licensing@sfc.hk and a new dedicated website for virtual asset trading only at: https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Overview.
Furthermore, the SFC lists all the forms that shall be used by VASPs and trading platform operators for licensing and registration applications and for the submission of various documents (e.g. financial return, analysis of client assets, etc.).
Finally, the SFC reminds platform operators and associated entities to immediately notify the Commission of any „material breach or non-compliance incident“. To facilitate immediate notification, the SFC has „upgraded its existing paragraph 12.5 notifications online portal“ to allow electronic reporting of any such incidents.