Hong Kong\u2019s Securities and Futures Commission (SFC) is gearing up to issue additional licenses to crypto exchanges and digital asset firms before the year ends. The move is part of a broader strategy to regulate the region’s rapidly growing crypto sector.<\/p>\n\n\n\n
SFC CEO Julia Leung announced on October 6 that the agency aims to advance the licensing process for 11 Virtual Asset Trading Platforms (VATPs) currently awaiting approval. According to local media outlet HK01, these platforms are part of a list of potential licensees under review. Leung highlighted that the SFC would issue these licenses in “batches” to ensure a smoother compliance process for these crypto exchanges.<\/p>\n\n\n\n
Currently, 16 companies are awaiting VATP license decisions, with 11 already operating under a “deemed to be licensed” status. Despite their operation, the SFC advises traders to proceed cautiously with these firms until they receive full licensing approval.<\/p>\n\n\n\n
Leung mentioned that the SFC has completed its initial round of on-site inspections for these firms. She assured that compliant platforms would likely receive their licenses, while those failing to meet the SFC\u2019s standards could expect their licensing applications to be rejected.<\/p>\n\n\n\n
The SFC\u2019s update came alongside the release of its roadmap for 2024 to 2026, which outlines plans to enhance crypto regulations, promote the tokenization of Real World Assets (RWA), and further explore blockchain technology adoption. Leung expects the overall regulatory framework for crypto assets to be finalized by the end of 2024.<\/p>\n\n\n\n
At present, Hong Kong retail investors are only allowed to trade four specific cryptocurrencies. The slow pace of regulatory updates has drawn criticism, especially as Hong Kong aspires to become a global hub for cryptocurrency and financial technology. However, the SFC is making efforts to streamline regulations to accommodate this goal.<\/p>\n\n\n\n
Recently, the SFC approved HKVAX as the third licensed crypto exchange in Hong Kong. The other two, OSL and HashKey, received their licenses in 2020 and 2023, respectively. The new approvals aim to bring more digital asset platforms into compliance with local regulations.<\/p>\n\n\n\n
Hong Kong\u2019s intensified focus on licensing and regulation follows the $165 million scandal involving the now-defunct Dubai-based exchange JPEX in 2023. Over 2,500 Hong Kong residents claim they were defrauded by JPEX, which heavily promoted its services in the region before hiking withdrawal fees and blocking users from accessing funds in September.<\/p>\n\n\n\n
In response, Hong Kong committed to strengthening its regulatory framework and cracking down on unlicensed crypto firms. The SFC has since launched a task force in collaboration with local police to monitor illegal crypto activities and updated its policies regarding crypto sales and requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"
Hong Kong\u2019s Securities and Futures Commission (SFC) is gearing up to issue additional licenses to crypto exchanges and digital asset firms before the year ends. The move is part of a broader strategy to regulate the region’s rapidly growing crypto sector. SFC Expects Progress in Licensing Pending Crypto Firms SFC CEO Julia Leung announced on […]<\/p>\n","protected":false},"author":18,"featured_media":7149,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30,43],"tags":[],"class_list":["post-11719","post","type-post","status-publish","format-standard","has-post-thumbnail","category-exchange","category-general-news"],"acf":[],"yoast_head":"\n