From June 1, 2023 Hong Kong SAR kicks off a new virtual assets regulatory regime which rules will allow crypto exchanges to offer their trading services to businesses and individuals based on their license.
It is with great pleasure that we announce that Fastex will start the process of acquiring Hong Kong crypto exchange license.
Applying for a lincensing in Hong Kong SAR means moving one step forward to becoming part of a truly global and extraordinary player in crypto space which serves for the best for the community.
We focuse our attention on meeting the highest standards of compliance and regulation to prevent any kind of fraud and illicit activities and takes all the measures to ensure utmost compliance. As a forward-thinking ecosystem, Fastex expands and goes to new and extraordinary lengths to become present in every market, remaining loyal, committed and competitive.
Hong Kong SAR has been leading the way globally in implementing a regulatory regime for VASPs. This regulatory move will serve as the basis of allowing and facilitating future cooperation with the overseas market.
The new regulatory framework
Under the new licensing regime for VASPs, any person seeking to carry on a business of providing a “VA service” will be required to obtain a VASP licence from the Securities and Future Commission (SFC).
In this context, “VA service” is defined to mean operating a VA exchange: that is to say, providing services through means of electronic facilities through which service users will conduct binding transactions to purchase VAs offer to sell VAs in exchange for money or any other kind of VA and where, in providing such services, client money or client VAs will come into direct or indirect possession of the service provider.
Under the new licensing regime, the SFC will only grant a VASP licence to locally incorporated companies with a permanent place of business in Hong Kong SAR or non-Hong Kong companies registered in Hong Kong SAR. Each VASP applicant is required to have at least two responsible officers who will assume general responsibility of overseeing the operation of the licensed VASP. Additionally, individuals may also apply to be licensed representatives to provide VA service on behalf of the licensed VASP.
In considering whether to grant a VASP licence, the SFC must be satisfied that the applicant, its responsible officers and licensed representatives are fit and proper persons. The SFC will consider factors such as the applicant’s financial status or solvency, education and qualifications, experience and reputation, character, reliability, financial integrity, and also whether there is any record of AML-related convictions.
On granting the VASP licence, SFC may also impose certain conditions. These may include requiring the VASP to have adequate financial resources, sufficient risk management policies and procedures, proper keeping of client assets, suitable VA listing and trading policies, proper financial reporting and disclosure, as well as mechanisms to prevent market manipulative and abusive activities and conflicts of interest.