CDS Crypto News Hong Kong Establishes a New Token Law
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Hong Kong Establishes a New Token Law

Hong Kong is introducing a 12-month new token law.

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Hong Kong Continues to Develop New Regulatory Framework for Stablecoins

Licensed platforms will soon be able to service retail investors, according to a formal announcement made by Hong Kong’s Securities and Futures Commission (SFC). On the other hand, when it comes to the crypto economy, the region is still cautious.

Hong Kong Establishes a New Token Law

A consultation on regulating virtual asset trading platforms was started by the Hong Kong SFC. Non-security tokens must have a track record of good behavior dating back a full year. On the other hand, retail investors must wait for the new policy before they can purchase stablecoins at this time.

According to the Hong Kong SFC, proprietary trading is forbidden, as well as Earn and Lending services, advertising activities involving specific cryptocurrencies, and platforms’ retention of cryptocurrency holdings.

About the Law

The SFC has not yet approved any virtual asset trading platforms that will offer services to individual investors, even though the regulations will take effect in June 2023. According to the press statement, the industry submitted 152 written comments to the SFC throughout the consultation period.

The rules specify expectations for cybersecurity requirements and obligations for regulated trading platforms, as well as secure custody of funds, client asset segregation, conflict of interest avoidance, and secure custody of client assets. More guidance on the new regulatory standards, as well as details on other aspects of implementation, such as the procedures for applying for licenses, will be provided by SFC.

Sources:Coincu
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lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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