It is accordingly important for all VATPs in Hong Kong to review the types of assets that are being traded on their platforms and consider whether such activities fall within the remit of the SFO and/or the GO, and whether it is necessary or advisable to obtain relevant licences from the SFC and/or the Home Affairs Bureau.
When assessing the application of a VATP operator, the SFC will consider a range of factors, including the applicant’s infrastructure, core fitness and properness and conduct of virtual asset trading activities as a whole.6 Upon being licensed, a VATP will be placed in the SFC Regulatory Sandbox where they will be subject to closer supervision from the SFC as well as reporting obligations.7
In addition to the usual regulatory requirements imposed on SFC licensed intermediaries, successful applicants will also be subject to strict licensing conditions. For example, licensed VATP may only provide services to “professional investors” (as defined under the SFO) and to comply with the SFC’s prescribed “Terms and Conditions for VATP Operators”.8