Casting the regulatory net over virtual assets – new regulation in Hong Kong for crypto fund managers, fund distributors and trading platforms

Yesterday, the Securities and Futures Commission (SFC) published a statement (Statement), together with a press release, setting out its new regulatory framework for virtual assets (also known as cryptocurrencies, crypto-assets and digital tokens). 

Ashley Alder, the CEO of the SFC, made clear in his speech during the Hong Kong FinTech Week that the SFC’s aim in setting up this framework is “to step up as much as we are able to protect investors who trade virtual assets”, in particular from the unique risks associated with a rapidly expanding industry.

The Statement was published in parallel with a circular on the expectations around the distribution of virtual asset funds and a circular on the content of the Statement.

In this bulletin, we explore what this new regulatory framework looks like and its key components.

 

William Hallatt
William Hallatt
Head of Financial Services Regulatory, Asia, Hong Kong
Email | Profile
+852 2101 4036
Hannah Cassidy
Hannah Cassidy
Partner, Hong Kong
Email | Profile
+852 2101 4133
Grace Chong
Grace Chong
Senior Associate, Hong Kong
Email | Profile
+852 2101 4138
Michael Tan
Michael Tan
Associate, Hong Kong
Email
+852 2101 4237
Arnold Pun
Arnold Pun
Associate, Hong Kong
Email
+852 2101 4196

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Filed under Announcements, Asia, Banking, Hong Kong, Investment banking, Investment Funds, Regulatory Reform, Sector Updates by Herbert Smith Freehills

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