In light of the FTX debacle, the Hong Kong Securities and Futures Commission (SFC) is drafting regulatory requirements for local licenced crypto exchanges, according to a report on Monday by Hong Kong public broadcaster RTHK. According to RTHK, the SFC is closely monitoring the crypto industry and plans to hold a public consultation in the near future. The SFC stated that FTX’s bankruptcy “highlights the risks of retail investors using an unregulated virtual asset trading platform” and the “importance of a regulatory framework that protects investors.” In December, Hong Kong’s Legislative Council amended the licencing regime for virtual asset service providers, requiring a licence to conduct crypto business in Hong Kong beginning in June 2023.
