The webinar elaborated on Hong Kong's regulatory framework for virtual asset trading platforms, emphasizing its two licensing regimes under the AMLO and SFO. The speaker explained the comprehensive licensing requirements, which include submitting a consolidated application through the SFC's WINGS platform, meeting stringent eligibility criteria, and fulfilling continuous obligations like financial reporting and external assessments.

Hong Kong's regulatory efforts aim to align with FATF recommendations, protect investors, and support the city's ambition to be a global crypto hub. The AMLO regime, effective since June 2023, mandates licensing for platforms trading non-security virtual assets and subjects violators to severe penalties, including imprisonment and fines.The recent JPEX scandal, resulting in significant investor losses and arrests, highlighted the risks of trading on unlicensed platforms and underscored the need for strict regulation and enforcement against breaches.

The speaker described the SFC's proactive measures in response, such as issuing warnings about unlicensed entities and establishing a joint working group with police to investigate suspicious activities.The webinar stressed the importance of trading on fully licensed platforms, noting that only platforms like OSL and Hashkey are currently licensed, while others operate under deemed licensing awaiting approval.

Continuing professional training for responsible officers and licensed representatives is mandatory to ensure compliance, with a focus on risk management, client protection, and market integrity. Finally, the speaker concluded by emphasizing Hong Kong regulators' commitment to enforcing the virtual asset trading regulations, protecting investors, and enhancing public awareness through education initiatives and media campaigns.

#VirtualAssets #HongKongRegulations #CryptoTrading

Timecodes: 00:00 Introduction to Hong Kong's Virtual Asset Licensing Regime 01:52 Current State of Licensing Regimes 03:29 Regulatory Alignment and Future Prospects 05:18 Licensing Requirements and Regulatory Objectives 11:24 Expanded Licensing Scope and Exemptions 13:08 Technical and Operational Licensing Criteria 14:40 Compliance, Qualifications, and Management Standards 18:15 Roles, Responsibilities, and Corporate Governance 21:13 Senior Management Accountability and Core Functions 26:09 Application Process and External Assessment 30:45 Working with Financial Institutions and Sandbox Environment 32:19 Monthly Reporting and Activity Restrictions 35:36 Committee Structures and Asset Monitoring 39:02 Client Protection and Due Diligence Standards 43:59 Custody and Compensation Requirements 01:01:39 Compliance and Enforcement 01:10:02 SFC's Regulatory Lists and Warnings 01:11:53 Enhanced Oversight and Scandal Response 01:13:35 JPEX Case Study and Broader Implications 01:35:01 Conclusion and Investor Recommendations

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Julia Charlton https://www.charltonslaw.com/the-firm/people-culture/team-profile/julia-charlton/

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