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Hong Kong Releases Guidelines for Crypto Firms Operating in the Country

Hong Kong has introduced its Virtual Asset Trading Platform (VATP) handbook to establish itself as a crypto hub. The Securities and Futures Commission (SFC) has provided guidelines for cryptocurrency companies that wish to operate in the city, and will oversee all licensing. The guidelines include "transitional agreements" that offer a one-year trial period for crypto firms to apply for a business license in 2024 if they meet the SFC's requirements.

The SFC will determine whether companies have "genuine operations and genuine business practices" based on several factors, including whether the platform is based in Hong Kong and if it is controlled and operated by employees based in the city. The handbook also establishes the presence of "regulated individuals" such as directors, responsible officers, and managers who must pass a "fit and proper" test.

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