Hong Kong SFC CEO Discusses Virtual Asset Trading Platform Regulation

According to PANews, Hong Kong Securities and Futures Commission (SFC) CEO Julia Leung stated in a recent interview that the SFC is committed to advancing the regulatory framework for virtual asset trading platforms while maintaining market fairness. Leung emphasized the importance of supporting the tokenization of traditional products and utilizing blockchain and Web3 foundational technologies to foster a responsible and secure fintech ecosystem. She noted that completing the entire framework would take at least until next year. To lead the financial market transformation, Leung highlighted the need to embrace financial innovation and advance the regulatory system for virtual asset trading platforms. The SFC has issued its third license, and 11 other platforms are currently considered license applicants. These platforms have undergone the first phase of on-site inspections and have been asked to make necessary adjustments. The goal is to make progress by the end of the year, including issuing licenses in batches. Applicants who do not meet the requirements will lose their eligibility, while those who comply will be conditionally licensed. Regarding cryptocurrency over-the-counter (OTC) services, Leung mentioned that the SFC has sought industry feedback on the new licensing regime for OTC and cryptocurrency custody services. The SFC will continue to advance the regulatory framework for virtual asset trading platforms.