Hong Kong Securities Supervision Commission: 12-month track record no longer required for stablecoins and virtual assets sold to professional investors

On November 3, the Securities and Futures Commission of Hong Kong issued two new guidelines for licensed virtual asset trading platforms. In its "Circular on Expanding the Products and Services of Virtual Asset Trading Platforms", the Hong Kong Securities Supervision Commission said that the Hong Kong Securities Supervision Commission no longer requires a 12-month track record for virtual assets (including stablecoins) sold to professional investors on virtual asset trading platforms. In addition, stablecoins issued by licensed stablecoin issuers are also not required to meet the 12-month track record requirement. While the 12-month track record requirement for products offered to professional investors has been removed, the Securities Supervision Commission reiterates that: a) virtual asset trading platforms should conduct all reasonable due diligence on any virtual assets (including stablecoins) before incorporating them for trading and ensuring that they continue to comply with all inclusion criteria established by the Token Inclusion and Review Committee; and b) virtual asset trading platforms that provide professional investors with a track record of less than 12 months on their platforms (including stablecoins) should make full disclosure.