The Hong Kong Securities and Investment Institute (HKSI) is gearing up to provide training programs for virtual asset traders as Hong Kong positions itself as a digital hub amid increased global regulatory scrutiny on online assets.
The HKSI, supported by the local regulator Securities and Futures Commission (SFC), will offer training and licensing exams for traders on centralized virtual asset platforms operating in Hong Kong.
Established in 1997, the HKSI is responsible for training and conducting licensing exams for brokers and asset managers in Hong Kong, with approximately 30,000 candidates taking the examination annually.
Over the years, training needs have evolved, driven by increasingly diversified and sophisticated markets. Today, market participants are keen to learn about fintech, green financing, ESG (Environmental, Social, and Governance), risk management, and other new initiatives.
One of the new initiatives is the virtual asset space, which has gained popularity and attention in recent years. Virtual assets, such as cryptocurrencies and tokens, are digital representations of value that can be used for payment or investment purposes.
However, they also pose significant risks and challenges for investors, regulators, and intermediaries.
To meet the demand for training in the virtual asset space, the HKSI plans to launch a series of training programs and seminars in the coming months.
Colin Shaftesley, Chairman of HKSI, is optimistic about the popularity of these upcoming virtual asset training programs, particularly among young people who have shown a keen interest in the virtual asset industry in Hong Kong.
Shaftesley emphasizes that regulation provides the industry with more confidence, allowing market participants to market themselves more comfortably as regulated entities.
While the HKSI will oversee the training and licensing examinations, the SFC will determine the timing of the first examination.
The new licensing system for virtual asset platforms
Hong Kong recently implemented a new licensing system for digital trading platforms and exchanges, introducing stricter rules for digital asset companies.
The licensing system aims at allowing retail trading in cryptocurrencies, providing a much-needed boost to the industry.
The SFC mandates licensing for new virtual asset trading platforms in Hong Kong. Existing operators have until June next year to apply.
Compliance with securities law, anti-money laundering, investor protection, market integrity, and client asset protection is expected.
Fair trading, prevention of market manipulation, and transparent information disclosure are also required.
The Challenges and Opportunities for Hong Kong’s digital hub
Hong Kong aims to create a transparent regulatory framework to attract crypto enthusiasts, distinguishing itself from mainland China’s cautious approach to the industry.
China has banned cryptocurrency trading and mining, citing concerns over financial risks and environmental impacts.
However, achieving the right balance between investor protection and business appeal remains challenging. The nature of the digital asset industry can be opaque, necessitating careful navigation to ensure market integrity.
Additionally, the success of a crypto-friendly Hong Kong may raise concerns in Beijing, where there may be apprehension that Hong Kong’s approach could impact its control over financial flows in Greater China.
As Hong Kong continues to position itself as a digital hub, training programs provided by institutions like the HKSI will play a crucial role in equipping traders with the necessary expertise for operating in the evolving digital asset market.
