The popularity of virtual assets in Hong Kong has significantly increased over the past few years, with more and more people and businesses becoming interested in investing in cryptocurrencies and other digital tokens as well as securing Hong Kong cryptocurrency licenses. This boom is partly due to the rise in popularity of Bitcoin and other virtual currencies, as well as the increasing acceptance of blockchain technology. The Hong Kong government has been supportive of the growth of the virtual asset industry, recognizing its potential to bring economic benefits to the city. However, it also acknowledges the importance of regulation to prevent money laundering and other illegal activities.
To this end, the Hong Kong government has implemented a regulatory framework for virtual assets that requires VASPs to follow strict compliance requirements, including the need to obtain a license from the Securities and Futures Commission (SFC) before offering virtual asset services in Hong Kong. The SFC also regularly monitors VASPs to ensure they are following the regulations and complying with the anti-money laundering and counter-terrorist financing requirements. In summary, Hong Kong VASPs are businesses that provide virtual asset-related services and are regulated under the AMLO. The increasing popularity of virtual assets in Hong Kong, with 70% of Hong Kong residents expressing interest in investing in virtual assets, has led to a boom in the industry, and the government is supportive of its growth while also regulating it to prevent illegal activities.
Engaging in the operation of a Virtual Asset (VA) exchange in Hong Kong without obtaining a proper license, or actively promoting the services of an overseas VA exchange that is not licensed in Hong Kong to the general public of Hong Kong, without a reasonable justification, will be considered an offense. Conviction on indictment for such offenses may result in a fine of HK$5 million and imprisonment for a period of seven years. In the case of a continuing offense, an additional fine of HK$100,000 may be imposed for each day during which the offense persists. For summary convictions, fines of up to HK$500,000 and imprisonment for up to two years may be imposed, along with a further fine of HK$10,000 for each day the offense continues.
Imishore Consultants is an international consulting firm that assists clients all over the globe with the process of obtaining cryptocurrency licenses like the Hong Kong VASP license. Our main goal is to support you throughout the licensing process so that you can channel your energy onto other important aspects of your business. Our comprehensive service package includes everything you need to get your virtual exchange started in Hong Kong, like registration of a domestic entity in Hong Kong, provision of a company secretary, registered legal address, nominee director service, corporate bank account opening as well as assistance under our regulatory compliance consulting services to ensure continuous compliance with the legal obligations. Our team of experts for obtaining offshore financial licenses has outlined the key takeaways from the newly introduced Hong Kong VASP License regime for VA exchanges.
The steps to obtain a Hong Kong VASP License?
Step 1: Initial Assessment
As a business consulting firm, our services begin with an initial assessment to evaluate your eligibility and readiness to apply for a VASP license in Hong Kong. We assess your business structure, management team, and compliance capabilities to determine the best course of action for obtaining a Hong Kong cryptocurrency license.
Step 2: Register company in Hong Kong
If you do not have a domestic Hong Kong company already incorporated, our experts can assist you with the company formation process. We provide comprehensive incorporation services, including company name search, provision of local address, agent and Hong Kong nominee director, preparation of necessary documents, liaison with relevant authorities, and guidance on legal and regulatory requirements. Our aim is to ensure a smooth and efficient incorporation process that meets your specific needs. Our team expects to complete the company registration process with Hong Kong Companies Registry within 1 week.
Step 3: Appointing Responsible Officers
We assist you in identifying and appointing at least two responsible officers who will oversee the operations of your licensed VASP and ensure compliance with AML/CTF requirements. Our team ensures that the responsible officers meet the necessary qualifications and residency criteria set by the regulatory authorities. Imishore Consultants team can assist with the recruitment of compliance officers who can ensure compliance with the AML/CFT requirements.
Step 4: Developing AML/CFT Policies, Procedures, and Controls
Developing AML/CFT Policies, Procedures, and Controls: Our experienced consultants work closely with you to develop comprehensive AML/CFT policies, procedures, and controls tailored to your specific business needs. We cover essential areas such as risk assessment, customer due diligence (CDD), ongoing customer monitoring, suspicious transactions reporting, record keeping, and staff training. Our aim is to create AML/CFT systems that align with the risk-based approach and adhere to all relevant statutory and regulatory requirements.
Step 5: Implementing AML/CFT Systems
We assist you in implementing effective AML/CFT systems based on the developed policies, procedures, and controls. Our team helps you establish robust risk assessment mechanisms, implement thorough customer due diligence measures, set up ongoing customer monitoring processes, facilitate suspicious transactions reporting mechanisms, establish comprehensive record-keeping practices, and organize staff training programs. Our goal is to ensure that your AML/CFT systems operate efficiently and meet regulatory standards.
Step 6: Adoption of reliable AML/CFT solution
Adoption of reliable AML/CFT solution: We advise you on adopting reliable AML/CFT solutions to enhance the efficiency and effectiveness of your AML/CFT processes. Our experts guide you through the selection, implementation, and integration of appropriate screening, due diligence (KYC), risk assessment, and ongoing monitoring tools. We ensure that the chosen solution aligns with regulatory requirements and industry best practices, providing you with peace of mind.
Step 7: Hong Kong VASP license application submission and support
Hong Kong VASP license application submission and support: Our consulting firm assists you in preparing and submitting the Hong Kong VASP license application. We ensure that all required documents, forms, and information are complete, accurate, and submitted in a timely manner. Throughout the process, we review your application package, provide guidance on any additional requirements, and offer ongoing support to address any queries or concerns.
Step 8: Compliance monitoring and maintenance
Compliance monitoring and maintenance: Once your Hong Kong VASP license is obtained, our services continue with compliance monitoring and maintenance. We conduct regular reviews of your AML/CFT systems, policies, and procedures to ensure ongoing compliance. We assist you with regulatory reporting obligations and keep you updated with the latest AML/CFT regulations and best practices. Our aim is to help you maintain a strong and compliant framework in a dynamic regulatory environment.
Conclusion
Obtaining a VASP license in Hong Kong is a meticulous process that requires comprehensive compliance with regulatory requirements. As a trusted business consulting firm, Imishore Consultants provide a range of services to assist you throughout this journey. From conducting an initial assessment of your eligibility to guiding you through the steps to register company in Hong Kong, appointing responsible officers, and developing robust AML/CFT policies and controls, our expertise ensures that you meet the necessary standards before obtaining a Hong Kong cryptocurrency license.
How can Imishore Consultants assist with Hong Kong VASP License?
- Initial Assessment
- Register company in Hong Kong
- Appointing Responsible Officers
- Developing AML/CFT Policies, Procedures, and Controls
- Implementing AML/CFT Systems
- Adoption of reliable AML/CFT solution
- Hong Kong VASP license application submission and support
- Compliance monitoring and maintenance
Contact us to know more about how to apply for a Hong Kong VASP License under the new regime and our team of licensing experts will revert within the next 24 hours.
