SFC Eases Crypto Rules for Liquidity and Product Offering
Hong Kong is looking to further drive growth in its crypto market with the local securities regulator issuing circulars to ease requirements.
Hong Kong's Securities and Futures Commission (SFC) has issued two new circulars for licensed virtual asset trading platform operators, according to a statement, in what it described as a «significant step in tapping global liquidity and broadening the range of their product and service offerings».
The first circular will allow platform operators to combine their local orders with those of affiliated overseas virtual asset trading platforms in a shared order book.
The second circular allows operators to offer trading in digital assets without the previously required 12-month track record for professional investors, stablecoins licensed by the Hong Kong Monetary Authority and distribution of tokenized securities and digital asset-related investment products. The associated entities of operators may also provide custody services for digital assets or tokenized securities not traded on their platforms.
Crypto Roadmap
The latest announcement is part of the regulator’s ongoing commitment to its so-called «ASPIRe» crypto roadmap unveiled in February, which stands for «Access, Safeguards, Products, Infrastructure and Relationships». The first and second circular relate to enhanced access and products, respectively.
«Making steady strides in market liquidity and business offerings is crucial to sustaining the growth momentum of Hong Kong’s digital asset ecosystem,» said SFC CEO Julia Leung. «Today, we take a significant step to connect with global liquidity, underscoring our commitment to striking a right balance in fostering market innovation and vitality while upholding high standards for investor protection and market integrity.»
