The Securities and Futures Commission (SFC) of Hong Kong is taking significant steps towards enhancing the Certified Virtual Asset Platform (CVAP) practitioner exam process. Following consultations with representatives from the local industry, the SFC will now separate the CVAP exam from its previously mandatory training course. This change aims to lower assessment fees and enhance the quality of study materials.
Exam Changes and Cost Reductions
Industry leaders called for more straightforward guidelines regarding self-custody, virtual asset payments, and the distinction between technology services and regulated activities. The discussions highlight Hong Kong's ongoing efforts to broaden its virtual asset licensing framework, which includes multiple digital asset services.
As reported by local media, these commitments emerged after a meeting between the Hong Kong Securities and Futures Professionals Association and regulatory officials, including Joseph Chan Ho-lim, Deputy Secretary for Financial Services and the Treasury, and Ye Chi-heng, Executive Director of the SFC's Intermediaries Division.
The association emphasized that the SFC would allow exam candidates to bypass mandatory classes before sitting for the CVAP exam. In addition, the regulator announced plans to offer official revision materials and lower examination fees to align with those of existing Paper 2 and Paper 3 licensing examinations.
Importance of Certification in the Digital Asset Sector
The Certification Programme for Virtual Asset Professionals serves as Hong Kong's primary professional qualification in the digital asset arena. Managed by the Hong Kong Securities and Investment Institute (HKSI) and aligned with SFC standards, this program certifies proficiency in blockchain fundamentals, digital asset products, and anti-money laundering (AML) compliance.
Concerns About New Regulations
During their meeting, industry representatives expressed apprehensions regarding the new virtual asset regulations. Notably, the SFC's decision to eliminate the previous 10% minimum exemption for virtual asset management and implement these rules without a transitional period has caused uncertainty for businesses entering or operating in the market. Many firms face challenges in compliance and business planning due to the principle-based nature of the new requirements, which lack practical operational guidance.
Questions were also raised about the governance surrounding the CVAP examination. The association inquired whether the examination framework had received formal approval from the SFC's board, considering its implications for licensed professionals. While the SFC did not respond directly to this question, it assured that the examination is conducted under powers established by the Securities and Futures Ordinance.
