Hong Kong SFC proposes restricting unlicensed entities from using misleading names, extending regulatory scope to virtual asset trading platforms.

November 7 - The Hong Kong Securities and Futures Commission (SFC) released a consultation conclusion on November 6, proposing to further restrict the use of names by unregulated entities that may mislead the public into believing they are regulated, and plans to extend the relevant restrictions to the virtual asset sector.

According to the proposed amendments, Hong Kong will introduce similar restrictions under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, focusing on virtual asset trading platforms and virtual assets that are not related to securities or futures contracts but can be traded or settled through virtual asset trading platforms. Unauthorized entities will be subject to restrictions on the use of relevant titles to prevent the public from mistakenly regarding them as regulated entities.

The relevant proposals have received broad market support. The SFC stated that it will further finalize the draft amendments to the Securities and Futures Ordinance and the Anti-Money Laundering Ordinance, and submit them to the Legislative Council for deliberation and approval.