Many friends cannot distinguish the regulatory system related to virtual assets by Hong Kong SFC.
You can check at this website:
https://apps.sfc.hk/publicregWeb/searchByBa?locale=en
There are a total of 5 categories of regulation involving virtual currencies.
1️⃣ Operating a virtual asset trading platform
2️⃣ Management of investment portfolios with more than 10% in virtual assets
3️⃣ Providing virtual asset trading services through omnibus account arrangements,
4️⃣ Providing advice on virtual assets
5️⃣ Acting as an introducing agent for virtual asset trading platforms
1. Operating a virtual asset trading platform
Cryptocurrency exchanges, currently 11 have been approved.
Involves trading match-making and asset custody, with the most comprehensive regulatory requirements, needing to comply with both SFO and AMLO.
2. Providing virtual asset trading services through omnibus account arrangements
Refers to intermediary institutions cooperating with SFC-regulated virtual asset trading platforms through the establishment of omnibus accounts to provide trading services for clients.
Rely on licensed platforms, with regulatory requirements relatively focused on intermediary activities.
This is the type of business application submitted by Guotai Junan International, and another approved domestic brokerage is Tianfeng International Securities.
3. Managing investment portfolios with more than 10% in virtual assets
Refers to managing investment portfolios (funds or accounts) in which more than 10% of the net asset value (NAV) is invested in virtual assets.
For example, more widely exposed ETFs such as Bosera ETF and Huaxia ETF.
#