The Procedure Review Committee of the Hong Kong Securities and Futures Commission: Proposals to simplify the licensing procedures for virtual asset t

Hong Kong's Securities and Futures Commission's (SFC) Process Review Committee released its annual report, pointing out that the SFC took about 2.5 years to process a virtual asset trading platform license application. In order to promote the licensing process and facilitate the development of Hong Kong's financial technology, while maintaining investor protection, the SFC recommends simplifying the licensing process and strengthening market awareness of the new licensing system for virtual asset trading platforms, as well as enhancing industry education on the licensing system.

In response, the SFC stated that part of the reason for the long processing time for the application is due to the complex business model of virtual asset trading platforms. The SFC has issued a series of guidelines and set up a dedicated webpage to facilitate applicants in obtaining information and guidance materials. Applicants must engage external assessment experts to ensure that their applications meet the standards, which simplifies the licensing process and maintains investor protection.