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 optimized and relaxed certain regulations based on market developments and industry opinions, and will subsequently issue guidelines regarding designated stablecoin activities. The content includes: first, allowing intermediaries to provide staking services to their clients, which must be conducted through licensed platforms and independent accounts, with risks disclosed; 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 physical form, 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 the requirement for intermediaries to ensure that clients have sufficient net assets, and the provision that intermediaries must make risk disclosure statements specifically regarding virtual asset futures contracts does not apply to clients who are institutional professional investors and qualified corporate professional investors.