In light of the increased prominence and popularity of virtual asset (VA)-related products and services, Hong Kong regulators have considered it appropriate in recent years to introduce reforms and provide additional guidance on VA-related activities.
In our bulletin of 2 March 2022, we discussed the recent joint circular issued by the Securities and Futures Commission and the Hong Kong Monetary Authority (HKMA) to intermediaries and the HKMA’s circular to authorised institutions. We also provided a brief overview of VA-related reforms since 2018 together with our bulletins on such reforms.
In this bulletin, we discuss the Insurance Authority’s recent circular, which sets out the Authority’s guidance to authorised insurers on activities related to VAs and virtual asset service providers (VASPs).
Key points to note
The circular took effect on 28 January 2022.
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Authorised insurers contemplating involvement in VA-related activities are strongly advised to inform and obtain advice from the Insurance Authority on the adequacy of their risk-management controls before launching any new products or services, or forming any type of relationship with VASPs.
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Authorised insurers…
