Hong Kong to Issue More Licenses to Crypto Exchanges This Year

Hong Kong’s financial watchdog plans to approve more platforms on its “deemed-to-be-licensed” list before the year ends.

In a recent interview published on local media HK01, Julia Leung, Chief Executive of the Hong Kong Securities and Futures Commission (SFC), stated that 11 virtual asset trading platforms are currently on the regulator’s deemed-to-be-licensed list. The SFC has conducted initial onsite inspections and advised these platforms to implement necessary adjustments.

CoinTab previously reported that these are currently operating under a temporary framework for crypto firms active in Hong Kong before introducing new regulations. The report noted that running an unauthorized virtual asset exchange (VAE) in Hong Kong is now a punishable offense, with the SFC committed to stringent enforcement of this rule.

According to Leung, the SFC aims to expedite the licensing process by year-end, with plans to issue licenses in batches.

SFC Issues Third License

Leung also highlighted that the SFC has issued its third license under the new regulatory framework for virtual asset trading platforms. The latest approval was granted to HKVAX, joining OSL and HashKey as licensed exchanges in Hong Kong.

Following its licensing approval, HKVAX announced last Thursday that it would focus on security token offerings, real-world asset tokenization, over-the-counter trading, exchange, and custody services.

The development aligns with Hong Kong’s efforts to enhance its role in the financial and asset management sectors, according to Anthony Ng, co-founder and CEO of HKVAX.  

“Obtaining the license affirms HKVAX and demonstrates Hong Kong’s resolve to lead in the virtual asset industry,” he remarked.

Concerns Over Licensing Requirements

Hong Kong launched a new crypto licensing regime in June 2023, allowing licensed platforms to offer retail trading services.

However, Hong Kong lawmaker Duncan Chiu has expressed concerns over the “overly strict” requirements for securing a license. He argued that the stringent rules have discouraged several major global exchanges from entering Hong Kong’s market.

Platforms like OKX, Gate.io, and HTX have reportedly withdrawn their applications. However, Bullish and Crypto.com are still active applicants on the SFC’s website.