Webinar | Overview of Hong Kong VASP licensing & SFC Consultation Conclusions | 12 July 2023

The Hong Kong Securities and Futures Commission has recently released its consultation conclusions on the Proposed Regulatory Requirements for Virtual Asset Trading Platform Operators Licensed by the Securities and Futures Commission in February 2023. This finalises the detailed regulatory requirements for Virtual Asset Trading Platforms operators under the SFC licensing regime.

Along with the licensing regime under the new Part 5B of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, which came into effect on 1 June 2023, Hong Kong now has two licensing regimes for entities carrying on a business of operating a virtual asset trading platform.

This webinar discusses the requirements for platform operators to become licensed under the two regimes and their ongoing obligations under them. It covers the following topics:

∙ the overview of the Hong Kong Virtual Asset Service Provider licensing regime and the background to the SFC consultation conclusions on the proposed regulatory requirements for Virtual Asset Trading Platform operators;
∙ retail access to licensed virtual asset trading platforms;
∙ insurance or compensation arrangements;
∙ trading in virtual asset derivatives;
∙ other adaptations to existing requirements incorporated into the SFC’s Guidelines for Virtual Asset Trading Platform Operators; and
∙ the transitional arrangements under the licensing regimes.

#VASP #SFC #LicensingRequirements

Timecodes:
00:00 Julia Charlton's welcome speech
00:11 Virtual Asset Trading Platform Operators: 2 Licensing Regimes
02:40 Financial Action Task Force (FATF) Requirements
02:56 Licensing under the AMLO
03:47 Providing a VA Service
05:29 Virtual Assets Definition
06:27 Exclusions from Virtual Asset Definition
07:08 SFO Licensing
09:27 Eligibility for Licensing under AMLO & SFO
09:59 Platform Operators’ Fitness & Properness
10:07 Licensed VASP: Financial Resources Requirement
11:02 Platform Operators’ Competency
11:59 Responsible Officer Requirements
14:06 Responsible Officers’ Fitness and Properness
15:12 Responsible Officers’ Educational Qualifications or Experience
16:01 Responsible Officers’ Industry Experience
18:03 Licensed Representatives
18:51 Licensed Representatives Required Educational Qualifications & Experience
19:43 Substantial Shareholders and Ultimate Owners
20:56 SFC Approval of a VASP’s Ultimate Owner
21:59 Managers-In-Charge of Core Functions (MICs)
23:22 VASP Complaints Officer & Emergency Contact Person and SFC Approval of Premises
23:53 VASP Licensing Application Process
26:15 Submission of Platform Operators’ Bank Account Information and SFC Regulatory Sandbox
26:51 VASP Licensing Conditions
28:37 Token Admission and Review Committee Requirements
30:08 VASP Obligations and Responsibility for Conduct & Adherence to Procedural Requirements
31:03 Virtual Asset Due Diligence and Admission Criteria
37:05 Providing VA Trading Services to Retail Investors
39:31 Prohibition on Trading Virtual Asset Derivatives and other Restricted Activities
40:46 Protections for Retail Investors and Retail Clients’ Knowledge of VA
41:45 Clients’ Suitability for Trading Virtual Assets and Virtual Asset Exposure Limits for VA Retail Clients
42:52 Suitability Obligations
43:36 Virtual Asset Due Diligence and Admission Criteria
44:08 VASPs’ Disclosure Obligations
44:46 Disclosure of Information for each Virtual Asset Traded
46:05 VASPs’ Obligations re. Handling Client Virtual Assets
47:40 VASP Insurance and Compensation Provision
49:22 Anti-Money Laundering & Counter-Terrorist Financing Obligations
50:48 Application of the Travel Rule to VA Transfers
52:20 Auditor Appointment and Submission of Audited Accounts/ Financial Resources Returns and Licensed VASPs’ Ongoing Reporting & Notification Obligations
52:59 Changes to VASP Licences Requiring Prior SFC Approval
54:10 Continuous Professional Training Requirements for Licensed Individuals
54:53 Market Misconduct Regime for Activities involving Virtual Assets
55:20 The SFO’s Market Misconduct Regime
55:40 Offence to Issue Advertisements to the HK Public to Acquire, Dispose of, Subscribe for or Underwrite Securities
55:56 SFC Powers with respect to Licensed VASPs
56:39 Transitional Arrangements for VA Exchanges Operating in HK before 1 June 2023


Charltons Law Firm:
https://www.charltonslaw.com/

Julia Charlton
https://www.charltonslaw.com/the-firm...

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