HKMA and Securities Supervision Commission will review requirements for virtual asset-related activities in due course

At today's Hong Kong Legislative Council meeting, Mr. LEE Wai-hong asked whether the regulator would expedite the approval of the upgrade of relevant licenses and moderately relax the requirements for intermediaries to distribute virtual assets (such as providing customers with warning statements on relevant products and conducting virtual asset knowledge assessments for customers).
The Secretary for Financial Services and the Treasury of Hong Kong, Hui Cheng-yu, replied that in order to effectively regulate the virtual asset industry in Hong Kong and achieve its sustainable development, the Securities Supervision Commission and the HKMA issued the Joint Circular on Virtual Asset-Related Activities of Intermediaries in January 2022, and amended the Joint Circular in October and December 2023 to optimize the requirements applicable to intermediaries participating in the distribution of virtual asset-related investment products. According to the regulations, licensed corporations must notify the Securities Supervision Commission in advance if they intend to engage in any activities involving virtual assets, while the registration authority must notify the Securities Supervision Commission and the HKMA. In general, licensed or registered intermediaries can distribute virtual asset-related products after notifying the relevant regulators of their regulated activities, without having to apply for a modification of the licensing conditions.