Hong Kong brokers line up for SFC approval ahead of new virtual asset trading legislation

Financial services providers successful Hong Kong are already taking the archetypal steps to supply services to retail investors, according to section reports. Brokers and money managers successful the portion person reportedly asked for proposal connected licensing requirements up of caller legislation.

Lawmakers successful Hong Kong passed an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) successful December 2022, which aligns with the region’s caller stance connected broadening the anticipation for crypto trading.

The amendment introduces a caller licensing strategy for virtual plus work providers, which volition let retail investors the quality to commercialized successful virtual assets. Currently, virtual plus trading is restricted to nonrecreational investors oregon traders with impervious of astatine slightest $1 cardinal successful bankable assets.

Victory Securities and Interactive Brokers were the archetypal 2 brokers successful Hong Kong with SFC to commercialized virtual assets for their nonrecreational clients.

According to Robert Lui, the integer plus person astatine Deloitte Hong Kong, retail investors volition astir apt beryllium capable to commercialized virtual assets with a ample marketplace capitalization and liquidity.

Currently Hong Kong-based brokers bash not request circumstantial licence to work clients trading Hong Kong-listed exchange-traded money futures based connected Bitcoin (BTC) and Ether (ETH). Though, those which volition supply virtual plus trading volition request further SFC approval. 

The caller licensing was initially scheduled for Mar.1 of this year, however the day was past pushed until Jun. 1 successful bid to springiness virtual plus work providers much clip to accurately prepare. 

Related: Crypto makes past successful 2022: Five instances of governments embracing integer assets

This comes aft the SFC precocious appointed Julia Leung arsenic its caller main executive. Leung started her word connected Jan. 1 and is acceptable to beryllium successful bureau for the adjacent 3 years. She has antecedently spoken retired astir tightening section crypto regulations. 

An enforcement from the Central Bank of Hong Kong besides precocious said it was looking into capitalist protection regulations.