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Hong Kong Adopts a Dual License System for Virtual Asset Platforms, and OSL and HashKey Are Still Applying for the Second License

On August 29th, it was reported that Hong Kong's licensing system for operators of virtual asset trading platforms is actually a "dual licensing" system. In addition to the licensing system for "security tokens" under the Securities and Futures Ordinance, there is also another licensing system for "non-security tokens" under the Anti-Money Laundering Ordinance, which will officially take effect on June 1, 2023.

Currently, several virtual asset trading platforms, including OSL Exchange and HashKey Exchange, are applying for the second type of license, but no licenses have been approved yet. The Hong Kong Securities and Futures Commission previously stated that the terms and characteristics of virtual assets may evolve over time, and the definition standards for "security tokens" and "non-security tokens" may also change. Therefore, virtual asset platforms should hold dual licenses to ensure compliance.

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