The Hong Kong Securities and Futures Commission: empowered to grant licences to "regulated activities" as defined in the Securities and Futures Ordinance

The Hong Kong Securities Regulatory Commission has issued "Warnings on Virtual Asset Futures Contracts" and "Standards: Regulating Virtual Asset Trading Platforms". The document shows that the Hong Kong Securities and Futures Commission is empowered to grant licences to those who carry out "regulated activities" as defined in the Securities and Futures Ordinance. Under this regulatory framework, if the platform operator operates a central online trading platform in Hong Kong and provides at least one type of securities-based token transaction on its platform, it will be within the jurisdiction of the CSRC and must have the first License for regulated activities of Class (Securities Trading) and Type 7 (providing automated trading services). Where the qualified platform operator complies with other licensing requirements (including appropriate candidate criteria), the SFC may grant a licence to the business of the virtual asset transaction.