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Venturing Out: Web 3.0 (I) — Hong Kong Virtual Asset Regime Overview
Web 3.0 is the latest evolution of the World Wide Web that envisages a more decentralized version of the web, underpinned by a constellation of advanced technologies and applications such as virtual assets ("VA(s)") of cryptocurrencies and non-fungible tokens ("NFT(s)"), and blockchain technology. Hong Kong has taken significant steps to establish an appropriate regulatory framework for the VA sector. Cybersecurity alongside investor protection are matters of utmost importance in Web 3.0 development. The regulation of VA trading platforms ("VATP(s)") took effect in June 2023, after an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the laws of Hong Kong) ("AMLO"). The Financial Services and the Treasury Bureau ("FSTB") consulted the public in February 2024 on legislative proposals to regulate over-the-counter ("OTC") trading of VAs. The Hong Kong Monetary Authority ("HKMA") and the FSTB also proposed a licensing and regulatory regime for fiat-referenced stablecoins ("FRS") in December 2023. This article aims to highlight the key points to note for commencing Web 3.0 VA-related businesses in Hong Kong.
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CSRC to Fill in Gaps in Program Trading Regulation
On April 12, 2024, the China Securities Regulatory Committee ("CSRC") released a public consultation draft of the Provisions on Program Trading Management in Securities Markets (for Trial Implementation) (《证券市场程序化交易管理规定(试行)(征求意见稿)》, the "Draft Provisions"). The consultation period will end on April 27, 2024. The Draft Provisions are the first comprehensive rules on program trading to be issued at the central financial regulator level, which intend to address a series of critical issues relating to program trading in China's securities markets.
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New Amendments to HKEX Listing Rules Allow Treasury Shares
On April 12, 2024, The Stock Exchange of Hong Kong Limited ("HKEX") published its consultation conclusions ("Consultation Conclusions") regarding the introduction of a new treasury share regime under The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules") ("Amendments"). The Amendments will be incorporated into the Listing Rules with effect from June 11, 2024[1]. After the Amendments become effective, a listed company may repurchase its shares and hold them in treasury for future resale if permitted under the laws of their places of incorporation and their constitutional documents. This article outlines the key Amendments and important explanations covered by HKEX in the Consultation Conclusions.
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Han Kun
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