The Hong Kong Securities and Futures Commission (SFC) is drafting regulatory requirements for the local licensed crypto exchanges, in light of the FTX debacle, according to a report on Monday by Hong Kong public broadcaster RTHK.
See related article: Hong Kong’s virtual asset licensing regime to take effect next June
- The SFC is closely monitoring the crypto industry, and will launch a public consultation in the future, according to RTHK.
- The SFC said the bankruptcy of FTX “highlights the risks of retail investors using a virtual asset trading platform that is not fully regulated” and “importance of a regulatory framework that protects investors.”
- Hong Kong’s Legislative Council passed amendments to the licensing regime for virtual asset service providers in December, which requires a license for doing crypto business in Hong Kong starting June 2023.
- In November, just three days after FTX filed for Chapter 11 bankruptcy, Hong Kong’s Financial Secretary Paul Chan said the region still welcomes the crypto industry and values its innovative features.
- See related article: Singapore says not possible to protect local users from FTX