According to Julia Leung, the Chief Executive of the Securities and Futures Commission (SFC), 11 platforms have received inspections from the regulator.
The Securities and Futures Commission (SFC) intends to issue additional cryptocurrency exchange licenses in stages by the conclusion of 2024, which will result in a significant transformation of Hong Kong’s financial landscape. The issuance of the third license under the new crypto trading platform regulations underscores the SFC’s objective to expand the virtual asset industry in the region.
In an interview with HK01, Julia Leung, the Chief Executive of SFC, disclosed that HKVAX has been granted permission to operate a cryptocurrency exchange. Previously, the SFC granted licenses to HashKey and OSL, demonstrating its active involvement in the development of a robust crypto market. Leung stated that the SFC has completed inspections of 11 platforms on its “deemed-to-be-licensed” list and has requested that these firms implement modifications to comply with regulatory requirements.
Leung also stated that the SFC anticipates significant progress by the end of the year and intends to issue additional licenses in installments. The SFC maintains control while accepting new applicants through this phased process. The strategy is essential for preserving investor confidence in the volatile crypto market by striking a balance between promoting development and assuring market stability.
The company’s emphasis was shifted to security token offerings and real-world asset tokenization as a result of SFC’s license granted to HKVAX. Additionally, the organization provides custody, exchange, and over-the-counter trading services. Anthony Ng, the co-founder and CEO, stated that this accomplishment is consistent with Hong Kong’s objective to enhance its status as a global asset management center and financial base. According to Ng, the license’s acquisition serves as confirmation of HKVAX’s contribution to Hong Kong’s leadership in the virtual asset sector.
In June 2023, Hong Kong initiated its initiative to attract crypto firms by implementing a crypto licensing regime for trading platforms. This new framework enables licensed exchanges to provide retail trading services in an effort to attract both domestic and international crypto businesses. Hong Kong’s objective is to enhance its reputation as a premier financial hub by instituting this system, which will capitalize on the increasing interest in digital assets.
Nevertheless, not all responses have been favorable. Lawmaker Duncan Chiu expressed apprehension regarding the “overly stringent” regulations that exchanges must adhere to in order to obtain licenses. Chiu observed that these stringent regulations have served as an impediment to the entry of major global exchanges into Hong Kong’s market. A number of exchanges, including Gate.io, OKX, and HTX, have discontinued their applications due to regulatory challenges. This serves as an illustration of the perpetual effort to reconcile industry expansion with market stability.
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