The Hong Kong Securities and Futures Commission and the Monetary Authority jointly issued a circular allowing intermediaries to provide virtual asset pledge services

ChainCatcher news, the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority jointly issued a supplementary joint circular on September 30 regarding the virtual asset-related activities of intermediaries, updating the licensing or registration conditions for intermediaries.

In terms of background, the two agencies have optimized and relaxed certain regulations based on market developments and industry opinions, and will subsequently issue guidelines regarding activities involving designated stablecoins. The content includes: first, allowing intermediaries to provide staking services to their clients, which must be conducted through licensed platforms and independent accounts, with risk disclosure; second, licensed corporations and registered institutions may provide off-platform trading services through licensed platforms; third, it is clarified that clients using virtual assets to subscribe and redeem investment products, or to subscribe or redeem virtual asset funds in kind, will not be considered as providing virtual asset trading services. Intermediaries must notify in advance, hold virtual assets in compliance, and adhere to anti-money laundering regulations; fourth, it clarifies that intermediaries should ensure that clients have sufficient net assets, and that the requirement for intermediaries to make risk disclosure statements to clients specifically regarding virtual asset futures contracts does not apply to clients who are institutional professional investors and qualified corporate professional investors.