Hong Kong to Approve the First License of Virtual Asset Trading Platform
Recently, the Hong Kong Securities Regulatory Commission (SFC) approved in principle the application for a virtual asset trading platform license by OSL company of BC technology group. If the SFC completes the final approval of the license, it means that the first licensed virtual asset trading platform in Asia will be born in Hong Kong.
“Hong Kong’s attitude towards digital assets has always been relatively positive and has been ahead of Asia, which is very important for maintaining its position as an international capital market.”
Dr. Zheng Lei, chief economist of Baoxin finance in Hong Kong, said in an interview.
“Once we meet the requirements of the SFC, the license will allow OSL to provide brokerage and automated trading services for digital assets, including stock tokens (STOs).”
Said Hugh Madden, CEO of BC technology group. This highlights the confidence of regulators in Hong Kong in the safety, compliance, risk management and internal control of the market.
As the SFC is concerned about the growing investor interest in cryptocurrencies and other virtual assets funds, where the significant risks are associated with, they are issuing guidance on the regulatory standards expected of virtual asset portfolio managers and fund distributors. Early in November, 2018, Hong Kong Securities and Futures Commission (SFC), launched a statement on the regulatory framework for virtual asset portfolios managers, fund distributors and trading platform operators. The regulatory approach for virtual asset portfolio managers indicated that those firms presently managing portfolios that invest in virtual assets, are required to inform the SFC. If the firm appears to be capable of meeting the expected regulatory standards, the proposed Terms and Conditions will be provided to the firm.
In November 2019, Hong Kong’s Securities and Futures Commission (SFC) has recently released rules and regulations for fund managers dealing with crypto assets. The regulation requires virtual asset fund managers in Hong Kong should at all times maintain liquid capital at a minimum of 3 million Hong Kong dollars (roughly $380k) and its variable required liquid capital. In addition, sufficient human and technical resources and experience are required depending on the amount of assets under management.
For the OSL trading platform, the most important trading category in the future is STO, which refers to the public issuance of legal and compliant tokens in accordance with the requirements of laws, regulations and administrative rules under the determined regulatory framework. STO is a kind of financial assets or rights and interests in reality, such as company equity, creditor’s rights, intellectual property rights, trust shares, as well as physical assets such as gold and jewelry, which are transformed into crypto digital equity certificates on the chain. STO is the digitization of various assets, rights and services in the real world.