Hong Kong implements a "dual license" system for virtual asset trading platforms, targeting security tokens and non-security tokens separately.

According to a report by Caixin on August 29th, Hong Kong has implemented a "dual license" system for operators of virtual asset trading platforms. In addition to the licensing system for "security tokens" under the Securities and Futures Ordinance, there is another licensing system under the Anti-Money Laundering Ordinance for "non-security tokens", which will officially take effect on June 1, 2023. Several virtual asset trading platforms, including OSL Exchange and HashKey Exchange, are currently applying for the second type of license, but no licenses have been issued yet. The Hong Kong Securities and Futures Commission previously stated that the terms and characteristics of virtual assets may evolve over time, and the definition standards for "security tokens" and "non-security tokens" may also change. Therefore, virtual asset platforms should hold dual licenses to ensure compliance.