Introduction

 

In response to growing concerns regarding unregulated virtual asset trading platforms (“VATPs”), on 25 September 2023, the Securities and Futures Commission (the “SFC”) announced the introduction of a series of measures aimed at reinforcing information dissemination and investor education.
 
Recognising both the potential benefits and risks associated with virtual asset activities, the SFC has been at the forefront of implementing a comprehensive regulatory framework since 2017.  The SFC has also been monitoring virtual asset activities in Hong Kong to detect possible breaches of law under its regulatory remit through gathering information from different sources, including market news, media reports, frequent dialogues with the industry, complaints and social media.  Where appropriate, the SFC would put entities on the Alert List and refer cases to the Police for further investigation.

Introduction

On 28 July 2023, The Hong Kong Monetary Authority (“HKMA”) and the Securities and Futures Commission (“SFC”) published a joint circular (“Circular”) on the streamlined approach for compliance with suitability obligations when dealing with sophisticated professional investors (“SPIs”) who possess higher levels of net worth and knowledge or experience (“Streamlined Approach”).

Introduction
On 21 July 2023, The Stock Exchange of Hong Kong Limited (the “Exchange”) published the consultation conclusions (the “Conclusions”) on rule amendments following Mainland China regulation updates and other proposed rule amendments relating to the People’s Republic of China (the “PRC”) issuers. The Conclusions were issued in response to the consultation paper published by the Exchange on 24 February 2023 (see our news update on the consultation paper).

On 31 May 2023, the Securities and Futures Commission of Hong Kong (the “SFC”) issued a circular (the “Circular”) regarding the transitional arrangements of the new licensing regime for centralised virtual assets trading platforms (“VATPs”) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) (“AMLO”), which has come into effect on 1 June 2023. Please see our news update on consultation conclusions on proposed regulatory requirements for VATP operators licensed by the SFC published on 23 May 2023 here.

Introduction

On 23 May 2023, the Securities and Futures Commission (the “SFC”) issued the consultation conclusions on the proposed regulatory requirements for virtual asset trading platform operators licensed by the SFC (the “Consultation Conclusions”) setting out the finalised changes on the regulatory requirements and proposed transitional arrangements under the new licensing regime (the “AMLO VASP regime”) for centralised virtual asset trading platforms (the “VA Trading Platforms”). The Consultation Conclusions were issued in response to the consultation paper (the “Consultation Paper”) published on 20 February 2023 (see our news update here).

Introduction

On 19 May 2023, the Securities and Futures Commission (the “SFC”) published the consultation paper (the “Consultation Paper”) seeking written comments on proposed amendments to the Codes on Takeovers and Mergers and Share Buy-backs (the “Codes”).