In Hong Kong, HKVAX has become the third crypto platform to obtain a license from the SFC.
Hong Kong’s financial landscape continues to improve as HKVAX acquires its cryptocurrency exchange license. The Securities and Futures Commission (SFC) has recently verified this approval. In the region, HKVAX was the third crypto-based platform to receive a license.
Simi Cheung, the director of the SFC’s Inspection & Money Laundering Branch, reported that she disclosed the decision during an interview. Leung stated that the new licensing framework in Hong Kong should be able to recruit a greater number of crypto firms. Nevertheless, she stated that the SFC intends to issue additional licenses before the year concludes.
This followed the SFC’s previous licensing of OSL, HashKey, and HKVAX. In the city, these organizations have already initiated the provision of cryptocurrency trading services. Hong Kong’s endeavors to enhance the territory’s position in the global crypto market are consistent with those of the SFC.
Launched in June 2023, the SFC’s licensing framework authorizes crypto trading platforms to collaborate with retail investors. Cryptocurrency firms that are interested in establishing stores in Hong Kong have expressed interest in the initiative. Leung claimed that it pertains to the preservation of regulation while also encouraging innovation within the industry.
HKVAX is leveraging this new opportunity to provide over-the-counter trading and custody solutions. Anthony Ng, the CEO and co-founder of HKVAX, stated that the license serves as an extension of the company’s dedication to the virtual asset sector. Additionally, he stated that the approval demonstrated Hong Kong’s aspiration to continue serving as a global financial center.
Nevertheless, there are certain stakeholders who have expressed their critique of the regulatory environment. Duncan Chiu, a local legislator, expressed apprehension regarding the stringent regulations. He acknowledges that these regulations may obstruct international exchanges from accessing the Hong Kong marketplace.
The Securities and Futures Commission (SFC) evaluates eleven additional platforms that have been “regarded as licensed.” These companies submitted applications and are currently undergoing an initial inspection of their facilities under the new framework. The SFC has already identified those applicants as having some compliance issues.
A recent discovery revealed that certain exchanges were experiencing governance issues. Numerous platforms should have relied more heavily on a small number of executives who were responsible for the custody of their clients’ assets. This dependence prompts numerous enquiries regarding the platforms’ management of their clients’ assets.
These inspections also identified cybersecurity vulnerabilities at certain exchanges. The SFC issued a warning that firms that fail to resolve these issues may forfeit their provisional licenses. This continuous examination demonstrates the SFC’s commitment to upholding the highest standards in the cryptocurrency industry.
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