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Gungun Bhatia
Jan 2, 2023
by Gungun Bhatia

HK Brokers Waiting for SFC License For New Digital Asset Trade Laws

Hong Kong SFC License

Table of contents

  1. Hong Kong SFC License For Digital Asset Trade Laws
  2. Trading of Virtual Assets With Market Cap and Liquidity
According to local media, financial service companies in Hong Kong have already begun to offer services to regular investors. Prior to new regulations, brokers and money managers in Hong Kong are apparently seeking guidance on SFC license requirements.

Hong Kong SFC License For Digital Asset Trade Laws

In December 2022, Hong Kong legislators approved an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) that is consistent with the region's current position on extending the potential of cryptocurrency trading.

With the addition of a new licensing structure for operators of virtual asset services, individual investors will now be able to trade in virtual assets. Currently, only seasoned investors or traders with documentation of at least $1 million in financially successful assets are permitted to trade virtual assets. The first two traders in Hong Kong to provide virtual asset trading for its corporate clients were Interactive Brokers and Victory Securities.

Trading of Virtual Assets With Market Cap and Liquidity

Robert Lui, the leader for digital assets at Deloitte Hong Kong, predicts that ordinary investors would probably be able to trade virtual assets with a significant market valuation and liquidity.

At the moment, brokers operating in Hong Kong can serve customers who trade exchange-traded funds based on Bitcoin and Ether that are listed in Hong Kong without a particular license. However, firms that provide virtual asset trading will also need further SFC permission. In order to allow virtual asset service providers more time to properly prepare, the new licensing was initially slated to go into effect on March 1 of this year but was subsequently delayed until June 1.

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Hong Kong Digital Assets SFC Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) Interactive Brokers and Victory Securities
HK Brokers Waiting for SFC License For New Digital Asset Trade Laws
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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