The Hong Kong Securities and Futures Commission (SFC) has issued a new circular allowing licensed virtual asset trading platforms to share their listing information with qualified overseas platforms. This move facilitates cross-platform trading and execution by integrating liquidity. The SFC mandates that platforms use Direct Verification (DVP) for payments and banking, and closely monitor intraday settlement limits and unsettled transactions.
Additionally, platforms are required to establish a reserve fund and insurance arrangements in Hong Kong to mitigate settlement asset risks. Uniform market surveillance is also required, with platforms needing to provide real-time transaction and customer data to the SFC. Before engaging with retail markets, platforms must ensure full risk disclosure and obtain customer consent, alongside applying for written approval under specific terms and conditions.
Hong Kong SFC Permits Liquidity Sharing Among Virtual Asset Platforms
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