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At the beginning of the new year, the US Securities and Exchange Commission "unprecedented" approved the listing of spot Bitcoin ETF, and the Eastern and Western markets Competition begins. Compared with the "easy entry and strict exit" virtual asset regulatory model in the United States, Hong Kong regulators have provided a relatively complete licensing access mechanism, and the regulatory model is clearer and more transparent. KoalaKoala Finance will conduct an in-depth analysis of Hong Kong’s issuance of virtual assets ETF in this article. The most important 3 license plate.
In accordance with the Hong Kong Securities and Futures Ordinance , the China Securities Regulatory Commission stipulatesTen main categories of regulated activities, and definitions of various regulated activities. Each type of license corresponds to a business. To engage in the corresponding business, you must Obtain the corresponding license:
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Category 1: Securities Transactions
Category 2: Futures Contract Trading
Category Category 3: Leveraged foreign exchange transactions
Category Category 4: Advising on securities p>
Category 5: Advising on futures contracts
Category 6 Category: Advising on institutional financing
Category 7Category: Providing automated trading services
Category 8: Providing securities margin financing
Category 9: Providing asset management
Category 10Category: Providing credit rating services
The Securities and Futures Ordinance gives the Securities and Futures Commission the functions and powers to supervise Hong Kong’s securities and futures markets. One of the important functions is to “provide supervision to the Securities and Futures Commission.” "Licensing and regulation of intermediaries for regulated activities". Unless there is a specific exemption, any person conducting business in the Hong Kong securities and futures markets and the non-bank retail leveraged foreign exchange marketRegulated activities must obtain a license from the SFC or register with the SFC. Carrying out regulated activities in Hong Kong without obtaining the required license or registration, or actively selling to the investing public in Hong Kong Promoting services that constitute regulated activities commits a serious offence.
If a financial institution wants to conduct securities trading activities in Hong Kong, the most basic condition is to hold 1 type license, so the 1 type license is also the most common among the ten major types of licenses, and the number of individuals and institutions holding licenses is also the largest among all licenses. . Hong Kong's 4 license is a license that companies that want to provide securities advisory services in Hong Kong need to apply for.
General enterprises will choose to apply for the 1 license and the 4 license at the same time, and hold the 1 licenses can conduct securities trading activities, and those holding 4 licenses can provide advice to customers. Hong Kong The main service of 4 license is to provide advice on securities. If it misleads investors, the Hong Kong Securities and Futures Commission will impose a fine. At the same time, Hong Kong's Type 4 licenses may be revoked at any time. The Type 9 (asset management) license issued by the Hong Kong Securities and Futures Commission mainly allows the licensee to conduct asset management Management activities, including managing collective investment plans, providing investment management consulting services, etc., are also essential for institutions that want to issue spot virtual assets ETFs . p>
| License type | Category 1, Category 4, Category 9 |
| Incorporated | •A company incorporated in Hong Kong; or •An overseas company registered at the Hong Kong Companies Registry |
| Responsible person< /span> | •For each type of regulated activity applied for For each type of regulated activity applied for, at least two responsible officers must be appointed to directly supervise the relevant activities to be carried out; •For each type of regulated activity applied for, at least one responsible officer must be available to supervise the relevant business at all times ; • Among the responsible officers to be appointed, at least one must be an executive director as defined in the Securities and Futures Ordinance; and < p>•Subject to general fit and proper requirements |
•All holdings to which they belong An individual carrying out one or more types of regulated activities of a licensed corporation must be a licensed representative; and • Must meet the general requirements Fit and proper requires senior management to have primary responsibility for ensuring that the corporation maintains appropriate standards of conduct and adheres to appropriate procedures. The SFC believes that the senior management of a licensed corporation includes: • Directors of the corporation < p>•Responsible officer of the corporation • Core Function Director | |
| Core Function Director | •For each of the eight core functions of a licensed corporation, at least one person should be appointed by the corporation to be responsible for managing that core function Supervisor; •The core functional supervisor of the overall management and supervision function and the main business functions must be the responsible person; •The rest Core functional managers are responsible for managing the following functions: operational monitoring and review, risk management, finance and accounting, information technology, compliance and combating money laundering and counter-terrorist financing; and •The core function manager can be appointed as the manager of multiple core functions at the same time to manage more than one core function. A licensed corporation can also appoint two or more persons jointly serve as core functional directors to jointly manage a specific core function |
| Financial Resources | •At all times, the regulated Type of activity, maintaining paid-up share capital and liquid capital at no less than the relevant amounts specified in the Securities and Futures (Financial Resources) Rules •The minimum paid-up share capital and liquid capital to be maintained for each type of regulated activity |
| Submit audited accounts | should be submitted within four months after the end of each financial year. Submit its audited accounts and other required documents |
| Submit financial resources declaration form | should submit to the Securities and Futures Commission within 21 calendar days after the end of each month that its license is subject to a condition that it cannot hold client assets. Restricted corporations should submit to the Securities and Futures Commission within 21 calendar days after the end of each half-year period |
| Combating money laundering and terrorist financing | Design and implement policies and procedures to combat money laundering and terrorist financing and control measures to meet the requirements of relevant laws and regulations |
| Internal control and risk management framework | Promote appropriate and effective internal control procedures to protect its operations and customers from theft, fraud and other misconduct The financial losses caused |
After the US Securities and Exchange Commission approves spot ETF, traditional financial institutions can buy it in a faster way into Bitcoin, further increasing market demand for Bitcoin. Since the total supply of Bitcoin is limited, increased demand may push up the price of Bitcoin. Although Hong Kong allowed the issuance of spot virtual assets ETF from a regulatory perspective before the United States, judging from the market's overall product issuance expectations, the actual product launch time will be slightly behind the United States.
However, Hong Kong is speeding up to catch up. According to Chen Peiquan, executive director of Victory Securities, a licensed virtual asset brokerage in Hong Kong, US regulators allow spot Bitcoin The listing of ETF is regarded by the "currency circle" as the key to connecting virtual currencies with physical exchanges, and it is bound to attract more investors to participate. Although Hong Kong's fund companies have not yet submitted applications, they are already intensively preparing for the application. It is expected that as soon as the first quarter of this year, many fund companies will express their willingness to apply, or even successfully apply.
In addition, the Hong Kong Stock Exchange has also entered a state of "everything is ready and all it needs is the east wind". Luo Boren, head of securities product development of the Hong Kong Stock Exchange, said that the Hong Kong Stock Exchange is ready Seizing the opportunities brought by thematic investment, we will work closely with issuers and various stakeholders to smoothly introduce this new product into the Hong Kong ETF market.
In the context of the Hong Kong Securities and Futures Commission’s efforts to develop Web 3.0 , invest in Bitcoin spot ETF will become an important option for financial entities such as asset management institutions and fund companies. Tens of billions of dollars of funds may gradually pour into it. Let us wait and see!
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