Hong Kong Securities and Futures Commission: No longer requires a 12-month track record for stablecoins and virtual assets offered to professional investors.

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[Hong Kong Securities and Futures Commission: No longer requires a 12-month track record for stablecoins and virtual assets offered to professional investors] On November 3, the Hong Kong Securities and Futures Commission issued two new guidelines for licensed virtual asset trading platforms. The Hong Kong Securities and Futures Commission stated in the “Circular on the Expansion of Products and Services of Virtual Asset Trading Platforms” that it no longer requires virtual assets (including stablecoins) offered to professional investors on virtual asset trading platforms to have a 12-month track record. In addition, stablecoins issued by licensed stablecoin issuers are also not required to meet the 12-month track record requirement. Although the 12-month track record requirement for products offered to professional investors has been canceled, the Securities and Futures Commission reiterated: a) virtual asset trading platforms should conduct all reasonable due diligence on any virtual asset (including stablecoins) before including such virtual asset for trading, and ensure that they continue to comply with all inclusion criteria established by the Token Inclusion and Review Committee; and b) if a virtual asset trading platform provides virtual assets (including stablecoins) with a track record of less than 12 months to professional investors on its platform, it should make adequate disclosures.

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