HashKey interprets the latest guidelines from the Hong Kong Securities and Futures Commission: Open Connectivity, Building a Sustainable digital asset Ecosystem

The Hong Kong Securities and Futures Commission (SFC) has announced a regulatory circular regarding licensed virtual asset exchanges. The circular mainly focuses on two key points: the sharing of liquidity among virtual asset trading platforms and the expansion of products and services offered by virtual asset trading platforms.

Firstly, the 'Circular on the Sharing of Liquidity Among Virtual Asset Trading Platforms' emphasizes the policy guidelines regarding liquidity sharing. The Securities and Futures Commission plans to allow licensed virtual asset trading platforms to share the global order book with their overseas affiliated platforms and is exploring mechanisms for brokers to access international liquidity. This not only helps local investors access global liquidity but also further strengthens Hong Kong's strategic position as a global digital asset trading hub. However, it should be noted that this is not a one-way 'liberalization', but simultaneously strengthens investor protection and market regulation. The circular stipulates that platforms must adopt DVP (Delivery Versus Payment) settlement, intraday settlement and monitor unsettled transaction limits, and establish a reserve fund and insurance/compensation arrangements in Hong Kong that are no less than the limit scale to cover settlement asset risks. In addition, market surveillance must be uniformly implemented and provide transaction and client data to the Securities and Futures Commission in real-time. There must be adequate risk disclosure to retail clients and obtain their selection, along with a simultaneous application for written approval, with additional terms and conditions.

Under this strict and clear regulatory framework, HashKey Exchange, with its network of licensed compliant exchanges established in places such as Hong Kong, Bermuda, and the Middle East, is expected to connect global order books with a licensed identity as policies are gradually implemented, while meeting regulatory requirements and providing more competitive services to global investors.

Second, the “Circular on Expanding Products and Services of Virtual Asset Trading Platforms” clearly further relaxes the admission standards for tokens, allowing the sale of virtual assets with less than 12 months of trading history to professional investors and stablecoin issuers, while also permitting licensed platforms to distribute digital asset and digital securities-related products. This allows HashKey Exchange to more flexibly and efficiently advance the virtual asset listing process within a compliant framework, meeting institutional demands for diversified asset allocation. We also note that market interest in RWA and wealth management products is rising. This regulatory optimization provides clearer institutional guidance for the industry. HashKey Exchange will actively cooperate with policy directions and continuously expand service capabilities to offer customers a richer, safer, and compliant range of digital asset products.

In addition, the new policy guidelines will allow licensed platforms to provide custody services for other institutions, even if the relevant assets are not traded on the platform. At the same time, there is also consideration to expand the scope of licenses to include virtual asset consulting and management services, in order to build a more comprehensive regulatory system. HashKey Exchange has accumulated rich practical experience in compliance custody and risk control, and in the future, with the opening up of consulting and asset management licenses, we hope to further extend the service boundaries on the existing foundation, building a service system that covers the entire process of trading, custody, investment consulting, and management, helping Hong Kong consolidate its leading position as a global digital asset center.

The Securities and Futures Commission has been actively involved in developing global regulatory standards, committed to promoting consistency among markets, which aligns with HashKey Exchange's long-term principle of “compliance first.” In the future, we will continue to focus on compliance as our foundation and innovation as our essence, closely collaborating with regulatory agencies, and working with industry partners to build a more robust, secure, and open digital asset ecosystem, helping Hong Kong consolidate its position as a global digital asset hub.