The Hong Kong Securities and Futures Commission (SFC) has published rules governing "trading platforms for virtual assets." The regulator’s license will be able to get platforms where at least one security token is traded.
The new rules are based on the standards that SFC applies to licensed brokers. They cover asset retention, compliance with KYC / AML rules and the prevention of market manipulation.
The rules also include additional requirements to address specific risks associated with cryptocurrencies. SFC requires licensed platforms to offer services exclusively to professional investors and adhere to strict criteria for listing digital assets. Licensees will be placed in a regulated sandboxed SFC (sandbox) for the supervision period.
The regulator emphasized that he does not have the authority to license and control platforms on which exclusively cryptocurrencies without the properties of securities are traded.
SFC also warned investors about the risks associated with the purchase of futures for virtual assets. According to the regulator, trading in such derivatives is largely unregulated and subject to extreme volatility.