回望癸卯：香港加密货币发牌制度的演化
Hong Kong has become a new continent for the development of the digital asset industry. The Hong Kong Securities Regulatory Commission will launch a comprehensive licensing system in 2023. That is, from June 1, 2023, all asset trading platforms operating on the market must start applying for licenses, otherwise they will not be allowed to operate.
The important thing to understand is that institutions interested in applying for a license cannot continue to carry out business activities prohibited by the licensing system, and must gradually and effectively cease related services and products, and act in accordance with the standards of licensed companies. Likewise, if a trading platform has no intention of applying for a license, it needs to be shut down. Therefore, it is crucial to understand which license best meets the platform’s operating requirements.
License No. 1 (securities trading) and License No. 2 (futures contracts) are the basic licenses for Hong Kong securities firms/traders to conduct business. If a Hong Kong securities firm on the market intends to expand its service scope and add virtual assets, it will need to apply to the Securities and Futures Commission for a license—or “upgrade” to include virtual asset business. The upgrade process involves responding to a detailed questionnaire and demonstrating that the companys employees have sufficient knowledge and experience.
Another relevant license is License No. 9, which is the asset management license. This license authorizes the investment manager to manage client assets, and can also invest more than 10% of the asset management scale in virtual assets through the upgrade operation. Of course, the applicant institution needs to prove that its employees have the necessary knowledge, ability and experience to invest in virtual assets.
By extending the coverage of investor protection to individual investors and professional investors, Hong Kong further consolidates its position as an international financial center and becomes the first choice for investors and high-quality virtual asset service providers. Allowing individual investors to invest in virtual assets through Hong Kong’s virtual asset platform and local securities firms will also significantly drive companies to achieve revenue growth and promote financial inclusion of this important emerging asset class.
In addition, the applicant institution must hold both No. 1 and No. 7 (automated trading platform) licenses before it can apply to operate a virtual asset trading platform (VATP) or become a virtual asset service provider (VASP). The application process for VATP/VASP is more cumbersome than other licenses because the business matters involved are more complex. The core contents of the regulatory inquiry include but are not limited to: custody, anti-money laundering (AML)/anti-terrorist financing (KYC), trading operations, market monitoring, network security and risk management.
