Hong Kong’s Securities and Futures Commission (SFC) has said that DeFi projects may be required to comply with regulatory requirements. The SFC’s interim head of intermediaries, Keith Choy, stated that DeFi activities are covered by the Securities and Futures Ordinance and will be subject to the same requirements as traditional finance. Speaking at the Web3 Festival in Hong Kong, Choy explained that licensing requirements are necessary when providing automated trading services. If a Decentralized platform allows trading of virtual assets, which represent securities or futures, then the platform and operators require a Type 7 license. The SFC has previously said that the DeFi ecosystem would benefit from regulation to address issues such as financial stability, limited transparency, and lack of data. Hong Kong’s new licensing regime for digital asset trading platforms is set to come into effect in June 2023.