- TRON’s Justin Sun appreciates the Hong Kong Securities and Futures Commission’s recent measures.
- Sun stated that the regulations balance risk mitigation with innovation.
- HK SFC will begin to accept crypto exchange applications on June 1.
TRON Foundation founder Justin Sun has appreciated the Hong Kong Securities and Futures Commission’s (HK SFC) cryptocurrency regulation in one of his recent tweets. Sun appreciated that the HK SFC is balancing risk mitigation with freedom for innovation. He also added that these changes resonate with all of the community in the blockchain space and the TRON network.
Great progress from the HK SFC on #Crypto regulation – balancing risk mitigation with the freedom for innovation.
These changes resonate with all of us in the #Blockchain space, including #TRONNetwork.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 24, 2023
The statement from Sun comes after the recent decision by HK SFC on the regulation of digital asset trading platforms.
HK SFC to accept license applications for crypto exchanges
According to an announcement made on Tuesday, the Securities and Futures Commission (SFC) in Hong Kong will start accepting applications for licenses for crypto trading platforms beginning June 1. The SFC has agreed to permit licensed virtual asset providers to cater to retail investors, under the condition that operators assess the investors’ comprehension of the associated risks.
The SFC’s consultation on policy recommendations, which was initially shared for public feedback in February, provides further details on this matter.
As per the rules, cryptocurrency exchanges are required to maintain a minimum capital of no less than 5,000,000 Hong Kong dollars ($640,000) at all times. Additionally, at the end of each month, the exchanges must submit reports to the SFC containing information on the platform’s available and required liquid capital, a summary of bank loans, advances, credit facilities, as well as a profit and loss analysis.
The rules also state that regulated exchanges must have a 12-month “track record” for approved tokens. These measures aim to ensure compliance and transparency within the regulated crypto trading environment.
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