From June 1, the Securities and Futures Commission of Hong Kong (SFC) will start comprehensive checks on cryptocurrency companies. The regulator has notified that by this deadline, all virtual asset trading platforms (VATPs) must either be licensed by the SFC or have a temporary license, which is issued while their applications are being reviewed.
The absence of the appropriate license will be considered a criminal offense and a violation of laws on combating money laundering and terrorism financing. Therefore, companies operating without permission may face serious legal consequences.
During the SFC checks, special attention will be paid to compliance with requirements to restrict access to virtual asset services for residents of mainland China. This measure is aimed at preventing circumvention of legislative restrictions and ensuring compliance with legal norms.
Earlier this year, the SFC introduced a new mandatory requirement for all cryptocurrency exchanges to have insurance coverage for user deposits of 50%. This was done to increase reliability and protect the interests of investors amid the growing number of transactions involving virtual assets.
Thus, the cryptocurrency company checks and the new regulatory requirements underscore Hong Kong’s commitment to strengthen control over the cryptocurrency market and ensure compliance with high standards of security and transparency. (No changes have been made, the information is presented as is, following the request).
