The Hong Kong Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have issued a joint circular allowing intermediaries to provide virtual asset pledge services. The "Supplementary Joint Circular Regarding Virtual Asset-Related Activities of Intermediaries," released on September 30, updates licensing and registration requirements, reflecting market developments and industry feedback.
The new regulations permit intermediaries to offer staking services through separate accounts on licensed platforms, with mandatory risk disclosures. Additionally, licensed corporations and registered institutions can provide off-platform trading services via licensed platforms. The circular clarifies that using virtual assets for subscribing to or redeeming investment products does not constitute trading services. Intermediaries must ensure legal compliance, maintain adequate net worth, and adhere to anti-money laundering regulations, while providing risk disclosures for virtual asset futures contracts, excluding institutional and qualified corporate professional investors.
Hong Kong Regulators Permit Virtual Asset Pledge Services for Intermediaries
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