The SFC and HKMA have updated their policy on virtual asset-related activities for intermediaries, emphasizing the risks associated with investing in virtual assets and proposing additional investor protection measures. Intermediaries providing virtual asset-related products and services must comply with suitability obligations, conduct due diligence, and provide clear information and risk disclosure statements to clients. They should partner with SFC-licensed platforms for virtual asset dealing services and adhere to regulatory requirements. The circular also outlines requirements for intermediaries dealing in tokenized securities and providing asset management and advisory services involving virtual assets. Intermediaries already providing virtual asset dealing services have a three-month transition period to align with the updated requirements.
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