Hong Kong’s SFC to Approve New Crypto Licenses by 2024 End
Hong Kong’s Securities and Futures Commission will reportedly get ready to issue a new round of cryptocurrency licenses before the end of this year. Liang Fengyi, head of the China Securities Regulatory Commission, indicated that 11 virtual asset trading platforms are in line for the license.
Crypto Licensing Progress
In an interview recently with Hong Kong 01, Liang Fengyi said that the SFC will grant licenses by batch and facilitate the regulation of VA platforms. So far, three have been given to cryptocurrency exchanges: Hong Kong Virtual Asset Exchange, OSL Exchange, and HashKey Exchange.
However, 11 others have also filed applications and are still waiting to be approved. The SFC has completed the first round of reviews and has asked some applicants to make necessary adjustments toward meeting the licensing requirements. Those who would meet these conditions would receive licenses by the end of the year, or else they lose their eligibility.
Strategic Focus of Hong Kong on Virtual Assets
Liang Fengyi emphasized that this licensing was part of the larger strategy for 2024-2026 in developing a more regulation-friendly environment regarding virtual asset platforms, including full tokenization of traditional products and Web3 technology in the financial ecosystem.
“The whole framework will be completed by next year,” Liang Fengyi said, pointing to an ambitious timeline for Hong Kong when it comes to regulating virtual assets.
New Licenses Issued for OTC Crypto Services
Besides VATPs, the regulatory authorities of Hong Kong have also set their sights on the cryptocurrency over-the-counter services. This has provided a new licensing system for OTC crypto custody services, and hence will involve various industry players in giving their views for proper alignment to regulatory standards.
This effort began in mid-September 2024, where the SFC began collaborating with the Customs and Excise Department to license OTC trading services. Such moves are a continuation of the earlier fight some platforms have had to comply with a myriad of government requirements touching on client asset management, as well as cybersecurity risks.
ZA Bank Gets Virtual Asset License
But after a year-long review, virtual assets bank ZA Bank became the first to get a license issued by the SFC on September 30. All this underlines the rising importance of a license for crypto platforms against the bigger government restrictions on unlicensed exchanges that allow transition to a more secure and regulated Cryptocurrency ecosystem in Hong Kong.
With the SFC working toward approving more licenses by year’s end, Hong Kong is rapidly cementing its place in the front ranks of crypto regulation and virtual asset innovation.
