Hong Kong's regulatory framework for virtual asset trading platforms (VATPs) took effect on June 1, 2023. Under this regime:
- All centralized VATPs operating in Hong Kong or actively marketing services to Hong Kong investors must be licensed by the Securities and Futures Commission (SFC).
- Unlicensed platforms pose significant risks, including potential fraud, security breaches, or lack of investor protections.
Key Steps for Investors
- Verify the License
Always check the SFC’s official List of Licensed Virtual Asset Trading Platforms before using any platform. Recognize Regulatory Protections
Licensed platforms must comply with strict rules, including:- Client asset safeguarding
- Anti-money laundering (AML) measures
- Transparent fee structures
- Avoid Unlicensed Platforms
Unregulated platforms may offer higher returns but often lack accountability.
👉 Why Choosing a Licensed VATP Matters
FAQs
Q: What happens if I use an unlicensed platform?
A: You risk losing funds with no legal recourse. Licensed platforms provide dispute resolution channels.
Q: Can overseas platforms serve Hong Kong investors?
A: Only if they obtain an SFC license. Cross-border marketing without a license is illegal.
Q: How does licensing improve security?
A: Licensed platforms must undergo audits, implement cybersecurity protocols, and segregate client assets.
Additional Resources
For deeper insights:
👉 Understanding Virtual Asset Regulations
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