Subscribe for notification
Crypto

Hong Kong SFC to Grant 11 Crypto Exchange Licenses

The Hong Kong SFC is prepared to gradually grant 11 crypto exchange licenses by the end of the year 2024.

The Securities and Futures Commission (SFC) intends to issue additional cryptocurrency exchange licenses in stages by the conclusion of 2024, which will significantly transform Hong Kong’s financial landscape. The third license under the new crypto trading platform rules has been granted, underscoring the SFC’s desire 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 developing 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 batches. 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 growth and ensuring market stability.

SFC’s Licensing Strategy for Crypto Platforms

The company’s emphasis was shifted to security token offerings and real-world asset tokenization due to SFC’s license granted to HKVAX. Additionally, the organization provides custody, exchange, and over-the-counter trading services. The co-founder and CEO, Anthony Ng, stated that this accomplishment is consistent with Hong Kong’s objective to enhance its status as a global asset management center and financial hub. According to Ng, the license’s acquisition confirms 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 to attract domestic and international crypto businesses. Hong Kong aims to enhance its reputation as a premier financial hub by implementing 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 obtain licenses. Chiu observed that these stringent regulations have served as an impediment to entering major global exchanges into Hong Kong’s market. Several 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.

Industry Response to Hong Kong’s Crypto Regulations

Despite the withdrawal of several major players, firms such as Bullish and Crypto.com continue to apply for licenses on the SFC’s website, indicating a steadfast commitment to the cryptocurrency sector in Hong Kong. Their persistent presence is a testament to their unwavering confidence in the region’s long-term prospects despite its regulatory obstacles.

The SFC intends to issue 11 crypto exchange licenses by the end of the year, indicating a concerted effort to enhance Hong Kong’s status as a leading financial center in digital finance and asset management. Nevertheless, the regulator must address the concerns of individuals like Duncan Chiu to establish a regulatory environment that effectively attracts global talent and investment.

The efficacy of Hong Kong’s crypto licensing strategy will be contingent upon the SFC’s capacity to balance strict regulation with promoting a business-friendly environment as the city advances through this complex scenario.

Edwin Aboyi

Edwin Aboyi is a product designer, writer, and illustrator with a degree in Biological Sciences from the University of Abuja. Passionate about merging technology with creativity, Edwin contributes to Protechbro.com by offering fresh perspectives on AI, Web3, and blockchain

Disqus Comments Loading...

Recent Posts

Altman, Huffington Debut AI Health Assistant

Arianna Huffington, founder of the Huffington Post, and Sam Altman, CEO of OpenAI, wrote a big opinion piece in Time…

17 mins ago

Pony AI Seeks $224M US IPO

Pony AI is getting closer to its start-up offering in the United States but keeps lowering the money it needs…

35 mins ago

Hawk Tuah Girl Launches AI Dating App, Pookie Tool

Haliey Welch, known for her viral "Hawk Tuah" video, launches the AI dating app Pookie Tool, marking a new chapter…

2 hours ago

Ford Faces $165M Fine Over Recall Failures

Ford has decided to pay $165 million to federal regulators because it took too long to recall cars with broken…

2 hours ago

ChatGPT Can Now Read Some Mac Desktop Apps

At the moment, OpenAI's ChatGPT is able to collaborate with other applications that are already installed on your personal computer…

3 hours ago

Pennsylvania House Proposes State Bitcoin Reserve

Pennsylvania has proposed a Bitcoin reserve bill, permitting up to 10% of state funds to be held in BTC to…

3 hours ago