The Hong Kong Securities and Futures Commission (SFC) plans to restrict unauthorized institutions from using various virtual asset and trading-related terms, with the rules taking effect six months after enactment

Odaily reports: The Securities and Futures Commission (SFC) of Hong Kong has published a consultation conclusion, proposing amendments to the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance to restrict unauthorized institutions from using specific terms that may mislead the public into believing their business is regulated by the SFC or associated with exchanges, clearing houses, and virtual asset trading platforms. The terms proposed for restriction include "crypto," "cryptocurrency," "crypto coin," "digital asset," "digital coin," "token," "tokenised assets," "virtual asset," "virtual coin," as well as "exchange," "market," "trading platform," and others. The restrictions target combinations of the above terms and similar terms, rather than necessarily restricting the use of any single word on its own. The SFC expects to submit the finalized legislative amendment draft to the Legislative Council for review; if the amendments are passed, the relevant provisions will take effect six months after enactment.