This article is from:BabbittThis article is from:
Babbitt
, Author: Lawyer Wang Wei, forwarded with authorization.
On the basis of preliminary research, the Zhide blockchain team briefly analyzed and summarized as follows: SFCs past regulatory position believed that only activities related to virtual currencies belonging to securities and futures contracts were regulated by the SFC. However, the supervision of the operation of utility token asset trading platforms or investment portfolio management companies outside this scope is in a vacuum, which increases the risk of virtual currency investment.
The SFC took action this time to bring most of the virtual asset portfolio management activities into the scope of supervision, and proposed to provide a regulatory sandbox for virtual currency exchanges to explore its future supervision.
securities"securities"or"futures contract"or
securities"securities"or"futures contract"securities"securities"and/or"futures contract"futures contract
The companies in the investment portfolio need to obtain the No. 9 license (providing asset management). Any virtual asset portfolio management company that intends to invest 10% or more of the total asset value of the managed portfolio in virtual assets is subject to SFC supervision. 1.3 The fund sales company of digital asset funds in Hong Kong needs to obtain the No. 1 license (securities trading). 1.4 License application procedures for investment portfolio management companies a) If a company is managing or planning to manage any investment portfolio investing in digital currency, it first needs to inform SFC. b) SFC will then know about the companys business situation. If the company meets the regulatory standards, the SFC will discuss with the company how to modify its business model and determine the specific conditions for its application for a license. If the company accepts the conditions proposed by SFC, it must strictly abide by them in the course of business, otherwise it may incur penalties from SFC.
secondary title
How to apply for a license for a virtual currency exchange
Hong Kong has attracted many active virtual currency exchanges, including Bitfinex, to settle in and conduct business. But these exchanges are not regulated by Hong Kongs securities laws. The New Regulations on Virtual Asset Management can be regarded as an experiment of SFC: SFC invites digital platforms capable and willing to develop in compliance with regulations to join the regulatory sandbox to jointly explore the most appropriate regulatory framework for virtual currency exchanges. Since the operator of the asset trading platform (virtual currency exchange) may simultaneously play the roles of broker and exchange with conflicts of interest, it cannot be expected that it can handle the conflict of interest in an unsupervised state. Signals raised for regulation.
2.1 Trading platforms can now voluntarily join the regulatory sandbox. For trading platforms that have joined the regulatory sandbox, if the SFC deems it possible to grant licenses to qualified platform operators, it will impose certain licensing conditions.
2.2 If it is in the trial supervision stage, the trading platform that has received a positive evaluation may be able to obtain a license. In order to avoid misunderstanding by the public, SFC has already issued a license to the platform, so at this stage, the identity of the sandbox applicant and the details of the relevant discussions will be kept confidential.
2.3 For digital currency trading platforms, SFC may adopt principles consistent with the current regulatory standards for licensed suppliers of automated trading services. It means that the trading platform needs to formulate strict internal monitoring measures, and needs to report more frequently and be subject to SFCs supervision and review.
2.4 It is worth noting that in Appendix 2 Conceptual Framework for Potential Regulation of Virtual Asset Trading Platform Operators, the SFC also proposes the core principles, terms and conditions for the issuance of licenses for trading platforms, and the guidelines for disclosing the permission to buy and sell virtual assets. Related suggestions:
core principles
Listing requires the project ICO to exceed 12 months or the ICO project has begun to generate profits;
Do not provide leverage components or buy or sell futures contracts or other derivative products related to virtual assets
Terms and Conditions
Do not provide leverage components or buy or sell futures contracts or other derivative products related to virtual assets
Terms and Conditions
With KYC/AML (identity authentication and anti-money laundering) process
epilogue
secondary title
