Hong Kong Securities and Futures Commission: Plans to restrict unlicensed institutions from using misleading names, regulatory scope extends to virtual asset trading platforms

On November 6, the Hong Kong Securities and Futures Commission released a consultation summary, proposing to further restrict unregulated entities from using names that may mislead the public into believing they are regulated, and plans to extend these 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, as well as virtual assets that are unrelated 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 viewing them as regulated entities. The related proposals have received broad support from the market.

The Securities and Futures Commission 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 review and approval.