HashKey interprets the latest guidance from the Hong Kong Securities and Futures Commission: Open interconnection, building a sustainable digital asset ecosystem.

The Hong Kong Securities and Futures Commission (SFC) has issued new regulatory guidance for licensed virtual asset exchanges, focusing on two main areas: shared liquidity and expanded product offerings.

Shared Liquidity: Licensed platforms can now share global order books with overseas affiliates and explore broker access to international liquidity. This enhances global market access for local investors while reinforcing Hong Kong's role as a digital asset hub. Strict safeguards are mandated, including real-time transaction monitoring, DVP settlement, reserve funds, and comprehensive risk disclosures for retail investors.
Expanded Products and Services: Token listing criteria are relaxed, allowing assets with less than 12 months of trading history to be offered to professional investors. Licensed platforms may also distribute digital asset-related products, including those tied to stablecoins and digital securities. This supports diversification and meets growing institutional demand for areas like RWA and wealth management products.
Additional Services: Platforms can provide custody services for third-party assets, even if not traded on their platform. Future licensing may expand to include virtual asset advisory and management services, fostering a more comprehensive regulatory ecosystem.

HashKey Exchange, aligned with these developments, plans to leverage its global licensed network to enhance service offerings, ensuring compliance while advancing Hong Kong's position as a leading digital asset center.

The Hong Kong Securities and Futures Commission (SFC) has released a regulatory circular concerning licensed virtual asset exchanges. The circular primarily addresses two key areas: shared liquidity among virtual asset trading platforms, and the expansion of the products and services offered by virtual asset trading platforms.

Firstly, the "Circular on Shared Liquidity for Virtual Asset Trading Platforms" focuses on policy guidance regarding shared liquidity. The Securities and Futures Commission (SFC) plans to allow licensed virtual asset trading platforms to share global order books with their overseas affiliates and to study mechanisms for brokers to access international liquidity. This will not only help local investors access global liquidity but also further strengthen Hong Kong's strategic position as a global digital asset trading hub. However, it is important to note that this is not a one-way "opening up" by the SFC; rather, it simultaneously strengthens investor protection and market supervision. The circular stipulates that platforms must adopt DVP (Delivered Verified) and intraday settlement and unsettled transaction cap monitoring, and establish a reserve fund and insurance/compensation arrangements in Hong Kong with a minimum cap size to cover settlement asset risks. Furthermore, market surveillance must be uniformly implemented and able to provide transaction and customer data to the SFC in real time. Before targeting retail markets, platforms must provide full risk disclosure and obtain customer selection, simultaneously applying for written approval with additional terms and conditions.

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

Secondly, the "Circular on Expanding Products and Services of Virtual Asset Trading Platforms" explicitly relaxes token access standards, allowing the sale of virtual assets with less than 12 months of trading history to professional investors and stablecoin issuers. It also permits licensed platforms to distribute digital asset and digital securities-related products. For HashKey Exchange, this means a more flexible and efficient process for listing virtual assets within a compliant framework, meeting the diversified asset allocation needs of institutions. We also note the rising market interest in RWA and wealth management products. This regulatory optimization provides clearer institutional guidance for the industry. HashKey Exchange will actively cooperate with policy guidance, continuously expand its service capabilities, and provide customers with richer, safer, and more compliant digital asset products.

Furthermore, the new policy guidelines will allow licensed platforms to provide custody services to other institutions, even if the assets are not traded on their platform. Simultaneously, consideration is being given to expanding the scope of licenses to include virtual asset advisory and management services, in order to build a more comprehensive regulatory system. HashKey Exchange has accumulated extensive practical experience in compliant custody and risk control. In the future, with the opening up of advisory and asset management licenses, we expect to further extend our service boundaries on the existing foundation, building a service system covering the entire process of trading, custody, investment advisory management, etc., helping Hong Kong consolidate its leading position as a global digital asset center.

The Securities and Futures Commission (SFC) has been actively involved in developing global regulatory standards and is committed to promoting market consistency, which aligns with HashKey Exchange's long-term commitment to "compliance first." Moving forward, we will continue to prioritize compliance and innovation, working closely with regulatory bodies and industry partners to build a more robust, secure, and open digital asset ecosystem, helping Hong Kong solidify its position as a global digital asset hub.