TRON’s Justin Sun Appreciates HK SFC’s Crypto Regulation

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.