Hong Kong’s SFC publishes ‘ASPIRE’: the new regulatory roadmap is the future of the city -state market
Alisa Davidson
Post: February 19, 2025 8:01 am update: February 19, 2025 8:02 AM
Edit and fact confirmation: February 19, 2025 8: 1 am
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Hong Kong SFC announced the “ASPIRE” roadmap to simplify market access, set up regulatory compliance and product framework, and overview 12 initiatives aimed at upgrading infrastructure.
The Hong Kong Securities and Futures Commission (SFC) simplifies market access, creates adaptive compliance and product framework, and upgrades infrastructure to combine 12 major initiatives to combine traditional financial reliability. The launch of the company (Tradfi) blockchain technology With efficiency. This approach emphasizes Hong Kong’s strategic efforts as a reliable hub for virtual asset liquidity.
Pillar A, titled “Access,” focuses on building a comprehensive ecosystem by aligning regulatory standards with global participation. SFC aims to attract qualified participants, expand investor options, and integrate Hong Kong deeper. Pillar A’s main goal includes developing a clear license framework for VASPS by developing a market access that can easily enter the market, including global platforms, liquidity providers, and liquidity providers. Create a transparent path for various stakeholders to encourage responsible participation. In order to improve market efficiency, price discovery and innovation, it expands access to regulatory services to improve investor opportunities.
It remains an important way to carry out large -scale transactions that can be purchased without a prescription, allowing buyers and sellers to perform block transactions without affecting market prices. SFC plans to support the introduction of a dedicated license framework for OTC transactions by the HKSAR government to solve the existing gap of the regulatory system. Consultation with stakeholders emphasized the essential role of the OTC desk in providing liquidity and promoting institutional participation. SFC applies “the same business, the same risk, the same rules” principle, which complies with the same regulatory requirements as VATP (Virtual Asset Trading Platforms) to promote fair competition and relieve risks such as money laundering and market manipulation. .
SFC also recognizes an important role in protecting customer assets by setting up a license framework for managers. This framework introduces a two -layer market structure that separates trading and parenting functions. The new regime is consistent with the standards that apply to traditional financial managers who deal with areas such as capital adequacy, cyber security and asset separation. Legislative preparations led by the HKSAR government, which have the opinions of regulators, are expected to be completed by the end of 2025.
Since virtual asset trading is essentially no boundary and liquidity is distributed in a diverse global liquidity pool, SFC recommends that major international virtual asset platforms will be operated in Hong Kong. This allows you to use global orders by complying with regional regulations. This integration will provide local investors with access to the global market and to develop deeper and more liquid markets by attracting institutional liquidity in Hong Kong.
ASPIRE: Strengthen security, competitiveness and market access to virtual assets in Hong Kong
Pillar S, which represents the protection means, is designed to promote the safe and competitive virtual asset ecosystem by aligning the standard standards of compliance with global best practices. This approach is balanced with the rigor of regulations, so that requirements are flexible and centered. Pillar S aims to improve investor protection while supporting sustainable industrial growth by providing clear guidelines and proportional supervision.
The framework adjusts core regulatory goals such as asset security and market integrity and compliance requirements, while still allowing market participants to implement innovative technology and operation control. Adopt a risk supervisory model to adjust the obligation to comply with other market participants’ specific risk profiles. This ensures systematic stability while avoiding unnecessary restrictions on innovation. In addition, it integrates virtual asset compliance with traditional financial frameworks to reduce uncertainty and minimize operational non -efficiency to promote regulatory clarity. Through these measures, SFC aims to create a regulatory environment that encourages responsible growth in the virtual asset sector and protects investors.
Pillar P has focused on expanding the availability of virtual asset products and services in the regulatory market in Hong Kong, which is adjusted to meet the various demands of various investors’ groups. SFC aims to maintain protection means to protect retailers while introducing investment tools that meet investors’ risk error and experience levels. This balanced regulatory approach encourages innovation while minimizing potential risks.
The main focus of this initiative is to promote the introduction of more sophisticated investment products that accept investors with various levels of expertise. At the same time, we will take strong protection measures so that retail investors are not exposed to risks that are not fully understood. The framework also integrates a comprehensive strategy to alleviate potential risks such as fraud, conflict and market manipulation. Pillar P is trying to support a dynamic but safe investment environment that creates responsible participation in the virtual asset sector by implementing these protection measures.
ASPIRE: Strengthen the SFC supervision of the virtual asset market and share transparent facts to give stakeholders.
Pillar I focuses on improving the SFC function that uses advanced technology and develops stable infrastructure to supervise the SFC function that oversees the virtual asset market. The goal is to strengthen the cooperation of large cross -enterprises in the region and to set up a comprehensive framework for monitoring and detecting risks, illegal activities and illegal activities in the region.
The main aspect of this initiative is to improve the entire market surveillance by increasing the visibility of VASP and identifying potential risks and irregularities. SFC aims to allow active intervention by detecting illegal activities in the initial stage by investing in cutting -edge data analysis and early warning systems. In addition, investor protection still remains as a priority, and there are measures designed to protect assets before and after potential events. Through the combination of technology -oriented supervision and collaboration regulation efforts, Pillar wants to create a safer and more transparent virtual asset ecosystem.
Pillar RE is designed to grant authority to both investors and industry participants by promoting the sharing of transparent facts. The goal is to install the knowledge needed to explore the complexity and risks of virtual assets. In addition, by allowing industry stakeholders to have a clear understanding of regulatory development, SFC aims to create a collaborative environment that can construct a business to the business formation.
The core goal of this initiative is to improve investor perceptions to fully understand the functions and risks related to virtual assets before the retailers make an investment decision. At the same time, industrial participation is recommended, and stakeholders can provide insights to help improve regulatory frameworks. The transparency of policy decisions still remains prioritized, allowing regulations to achieve the intended regulatory results, allowing regulations to be accessible and accessible and consist of market demands.
SFC’s regulatory roadmap reflects future -oriented approaches to solve the problem of the virtual asset market. Success requires a balanced effort of all participants. Regulations must manage innovation carefully while maintaining market integrity, and institutions should prioritize long -term stability over short -term guesses, and retail investors should pay attention to information based on information.
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About the author
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
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Alisa Davidson
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
More