Dear ,
November is an eventful month for fintech in this part of the world, as two financial centres Hong Kong and Singapore have housed thousands of speakers, delegates and enthusiasts to evangelise new ideas, exchange thoughts and explore synergies.
The announcement of virtual assets regulatory framework definitely grabbed the limelight. Ashley Alders, CEO of SFC, delivered his keynote at the Hong Kong Fintech Week and said, " our rules are meant to be principles-based and technologically neutral. The challenge is how to apply consistent principles of investor protection and provide useful, detailed guidance on the use of innovative technology in such a fast-moving environment.”
In the position paper, SFC lays down an opt-in approach for virtual/ digital assets trading platform operators to undertake regulated activities for digital assets (i.e. STOs). The main constituents of the framework are (a) safe custody of assets, (b) know-your-client requirements, (c) anti-money laundering and (d) market manipulation.
The following exhibit summarises the details of the new framework:
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