Hong Kong's Securities and Futures Commission (SFC) has announced that it will soon allow licensed platforms to offer services to retail investors.

In an announcement on May 23, the regulator said it welcomes operators of virtual asset trading platforms willing to comply with its suggested guidelines to apply for licenses.

The guidelines that virtual asset trading platforms will need to comply with will include asset custody security requirements, customer asset isolation and cybersecurity standards.

SFC chief executive Julia Leung said providing clear regulatory expectations was "key" to creating a responsible and innovative development environment. "Hong Kong's comprehensive virtual asset regulatory framework follows the principle of 'same business, same risk, same rules' and aims to provide strong investor protection and manage key risks."

While the guidelines will come into effect from June 2023, the SFC has not yet approved any virtual asset trading platforms to offer their services to retail investors. According to an announcement during the consultation period, the SFC received 152 written comments from the industry.

In addition, the regulator said it would implement "a number of robust measures" to ensure the protection of retail investors.

Currently, most virtual asset trading platforms accessible to the public are not regulated by the CSRC, the announcement said.

In addition, those institutions that do not want to comply with the forthcoming guidelines should plan for an "orderly shutdown" of their operations in Hong Kong.