PANews reported on May 10 that according to the Hong Kong SAR Government Investment Promotion Agency's official account, the Hong Kong Securities and Futures Commission (SFC) will officially implement a new licensing system for virtual asset service providers on June 1. In order to provide reasonable and sufficient time for virtual asset trading platforms currently operating in Hong Kong to apply for licenses or close down in an orderly manner, the Hong Kong government will provide transitional arrangements from June 1, 2023 to May 31, 2024. However, it must meet the conditions set out in Schedule 3G of the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022. Companies that plan to provide virtual asset services in Hong Kong after June 1, 2023 must apply to the SFC in advance and obtain a license. Virtual asset exchanges should obtain dual licensing and approval from the SFC in accordance with both the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022.

Related reading: Analysis of the upcoming Hong Kong virtual asset (VASP) licensing system (2023.6.1)