A private wealth management industry perspective on virtual assets
Learn more in this report prepared by the Private Wealth Management Association with assistance from Simmons & Simmons.
Hong Kong’s Financial Services and the Treasury Bureau (the FSTB) published a policy statement entitled “Policy Statement on Development of Virtual Assets” on 31 October 2022 which sets out the Hong Kong Government’s policy stance and approach towards developing a vibrant sector and ecosystem for VA in Hong Kong. The Hong Kong Government will adopt the “same activity, same risks, same regulation” principle and put in place timely and necessary guardrails, so that VA innovations can thrive in Hong Kong in a sustainable manner.
The Private Wealth Management Association (PWMA) and its members, including Simmons & Simmons, welcome and support the above principle, as well as the comprehensive framework which the Securities and Futures Commission (the SFC) and the Hong Kong Monetary Authority (the HKMA) have put in place to regulate VA-related activities.
The focus of this position paper is the joint circular which the SFC and the HKMA published on 28 January 2022 entitled “Joint Circular on Intermediaries’ Virtual Asset-Related Activities” (the Joint Circular, together with six appendices) which set out new requirements applicable to intermediaries which engage in certain types of VA-related activities.
With the aim to defend Hong Kong’s position as one of the leading financial centres in the world and a leading private banking hub in the Asia Pacific region – and applying the “same activity, same risks and same regulation” principle – PWMA and its members would like to take this opportunity to make recommendations on the regulatory framework applicable to the types of VA-related activities covered by the Joint Circular.
Set out in the report, which was prepared with assistance from Simmons & Simmons, is a summary of key recommendations in regards to the Joint Circular.
