The Hong Kong Securities and Futures Commission intends to issue several new cryptocurrency licenses by the end of the year.
Eleven cryptocurrency platforms are now being evaluated for licenses. Liang Fengyi, CEO of the China Securities Regulatory Commission, disclosed that the SFC will award licenses to Virtual Asset Trading Platforms in phases during an interview with news organization Hong Kong 01.
The Hong Kong Virtual Asset Exchange, OSL Exchange, and HashKey Exchanges are three cryptocurrency exchanges that have recently received licenses from the SFC to operate in the area.
Eleven other platforms, in addition to the three licensed ones, have applied for and are awaiting approval of SFC-issued licenses.Â
According to Liang Fengyi, after conducting the initial round of on-site evaluations, officials have requested that applicants make the required adjustments. She said that by granting several VATP licenses, the SFC hopes to significantly advance the regulation of virtual assets by the end of the year. Fengyi said:
Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally”
According to Liang Fengyi, Hong Kong regulators would support the tokenization of traditional products, encourage the creation of legislation for virtual asset trading platforms, and use web3 fundamental technologies and regional chains as part of their 2024–2026 agenda.
“We’ll finish the entire framework by next year,” she stated. Liang Fengyi brought up that the CSRC has developed a new licensing scheme for Bitcoin over-the-counter (OTC) custody services to get input from participants in the market.
The Securities and Futures Commission of Hong Kong started collaborating with the Customs and Excise Department to grant licenses for over-the-counter cryptocurrency trading businesses in the middle of September 2024.
Due to their inability to appropriately anticipate cybersecurity risks and their failure to meet government standards for client asset management, cryptocurrency platforms in Hong Kong were having difficulty obtaining licenses at the time.
The SFC granted ZA Bank a license on September 30, making it the first virtual assets bank in Hong Kong following a year-long assessment process.
Since financial regulators have tightened limits on unlicensed exchanges and the establishment of a regulated crypto ecosystem, licenses have become essential for cryptocurrency platforms operating in Hong Kong.
