Hong Kong - SFC announces “opt-in” regulation for virtual asset trading platforms

The Securities and Futures Commission (the “SFC”) has published a position paper setting out a new regulatory framework for virtual asset trading platforms. The regulatory framework will apply to platforms that operate in Hong Kong and provide trading, clearing and settlement services for virtual assets and have control over investors’ assets. The position paper is a result of the SFC’s regulatory sandbox exploring the regulation of virtual asset trading platforms, announced in November of last year.