Hong Kong’s VATP regime defines how regulated virtual asset trading platforms should operate. Any team planning to launch or partner with a Hong Kong VATP needs to map product design, governance, and controls to the Securities and Futures Commission’s expectations from the start.
Scope and licensing
The SFC framework covers virtual assets that are not securities as well as certain security tokens. Key points:
- VATPs must either be licensed or fall outside Hong Kong’s perimeter; there is little tolerance for grey zones.
- Client segmentation matters: some assets may be restricted to professional investors depending on their risk profile.
- Fit and proper requirements apply to responsible officers and key personnel.
A licensing plan should spell out how the platform meets each criterion, with timelines and accountable owners.
Technology and custody expectations
Technology risk management is central to the regime. Operators should be ready to show:
- Secure key management, wallet design, and segregation between client and house assets.
- Monitoring, logging, and incident response processes with clear escalation paths.
- Change management that documents every deployment, rollback, and test.
Custody controls should be paired with independent attestations or proof of reserves so clients and regulators can verify asset coverage.
Market integrity and listings
VATPs are expected to prevent manipulation and protect clients. Practical steps include:
- Surveillance that flags spoofing, wash trading, and other abusive patterns, with evidence of follow up.
- Listing frameworks that assess legal classification, technology risk, issuer background, and tokenomics.
- Ongoing reviews and the ability to suspend or delist assets when conditions change.
These controls should be visible in client communications and due diligence packs.
Regional positioning
Hong Kong’s rules influence expectations across Asia. Aligning with the VATP regime, even when operating elsewhere, gives operators a head start when entering new markets or partnering with banks that benchmark against SFC standards.
For VATP.IO, the goal is to meet these requirements from the outset. That means pairing the domain with a regulated-first build, clear documentation, and open channels for regulators and banking partners.