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Hong Kong Securities and Futures Commission Updates Cryptocurrency Market Regulation in Line With New Market Developments

Hong Kong Securities and Futures Commission announced plans to update its cryptocurrency sales and regulatory framework as the digital asset industry continues to develop. The revised notice issued by the regulatory agency on October 20 covers five main areas related to the cryptocurrency industry, including the distribution of virtual asset (VA)-related products, as well as the provision of cryptocurrency trading services, asset management platforms, advisory services, and implementation procedures. 

For example, complex products related to VAs, such as cryptocurrency exchange-traded funds and products outside Hong Kong, will only be open to professional investors. In addition, intermediaries related to the cryptocurrency field will assess whether investors have sufficient knowledge of virtual asset trading before executing any transactions.

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