Key Points: Industry insiders claim that financial service companies in Hong Kong, China are working hard to make it possible for retail customers to trade virtual assets within the next few months.
Large market capitalizations and liquidity are possible with virtual assets. Brokers do not need additional licenses to offer trading services to clients in Hong Kong-listed ETF Futures based on Bitcoin or Ethereum.
However, anyone who plans to offer active trading of virtual assets such as cryptocurrencies or their related futures products will need additional approval from SFC.
According to the South China Morning Post industry insiders, financial service companies in Hong Kong, China are working fast to make it possible for retail customers to trade virtual assets.
“We have had a lot of local fund managers and brokers seeking our advice about the licensing requirements under this new regulatory regime.”
Last month, the Legislative Council passed an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Act. This new licensing regime will apply to virtual-asset service providers starting in June under the supervision of the Securities and Futures Commission. Clients can trade in Hong Kong-listed ETF Futures based on Bitcoin or Ethereum without the need to obtain additional licenses from brokers. The SFC will need to grant further permission before active trading in virtual asset like cryptocurrencies or related futures products can be offered to clients.
“Brokers who wish to trade virtual assets on behalf of retail investors must have responsible officers with knowledge of virtual-assets. Lui said that they must also show the SFC that there are internal controls, client money custody, and insurance arrangements to protect client interests.”
GEM-listed Victory Securities, and Interactive Brokers were the first two brokerage firms in Hong Kong to be approved by the SFC to trade virtual assets for professional clients. However, the authorities still believe that the introduction of regulations will give them better protection.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: FTXhong kongInteractive BrokerssfcVictory SecuritiesVirtual Assets