(Yicai Global) Feb. 21 -- Hong Kong's securities and futures regulator is soliciting opinions and suggestions on the requirements that virtual asset trading platforms will need to meet to obtain a license.

The consultation period will end on March 31, with the new licensing regime taking effect on June 1, the Securities and Futures Commission said in a statement yesterday. 

Hong Kong's Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2022 released last December ruled that individual investors will be allowed to trade large-cap virtual assets only on trading platforms licensed and regulated by the SFC.

“In light of the recent turmoil and the collapse of some leading cryptocurrency trading platforms around the world, there is a clear consensus among regulators globally for regulation in the virtual asset space to ensure investors are adequately protected, and key risks are effectively managed," said Julia Leung, chief executive officer of the SFC.

The watchdog did not reveal which kinds of cryptocurrencies will be open for trade to retail investors, but said large-cap virtual assets should be included in at least two acceptable indexes compiled by at least two independent index providers, at least one of which needs to have experience in traditional non-virtual asset financial markets.

Bitcoin and Ethereum are likely to be listed on the Hong Kong bourse, a spokesman for the SFC said.

Hong Kong's cryptocurrency exchange system is voluntary and limited to customers with portfolios of at least HKD8 million (USD1 million). HashKey Group and BC Technology Group's OSL Exchange are the only licensed digital asset trading venues in the Hong Kong Special Administrative Region.

Editor: Futura Costaglione