Hong Kong’s Legislative Council passed the amendment to the bill that includes a licensing regime for virtual asset service providers (VASP) on Wednesday, which will come into effect on June 1, 2023, three months later than initially planned.
See related article: Hong Kong crypto exchange AAX has lost most staff, unlikely to reopen, says former executive
Fast facts
- The transition period is intended to give sufficient time for businesses to apply for the license or pursue registrations, according to a government press release.
- The amended Anti-Money Laundering and Counter-Terrorist Financing Bill requires VASPs to obtain a license from the Securities and Futures Commission.
- Applicants must also pass local anti-money laundering and counter-terrorist financing scans while complying with regulatory requirements on investor protection, which includes “safe custody of client assets.”
- Hong Kong recently rolled out the welcome mat for the cryptocurrency industry and doubled down on its position despite the implosion of FTX.com, a now-bankrupt cryptocurrency exchange formerly based in Hong Kong that has been accused of trading with customer funds.
- This week, three asset managers applied for exchange-traded funds (ETF) that track cryptocurrencies in Hong Kong, according to Nikkei Asia.
- Meanwhile, Hong Kong-based asset management company Pando Finance launched two virtual assets ETFs on Thursday, South China Morning Post reported.
See related article: Unfazed by FTX fiasco, Goldman Sachs eyes investments in crypto market
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://forkast.news/headlines/hong-kongs-virtual-asset-licensing-regime-to-take-effect-next-june/
