Hong Kong has approved licenses for four more cryptocurrency exchanges as part of its efforts to streamline the licensing process and solidify its position as a global crypto hub.
Hong Kong Crypto Exchange Accelerates Licensing, Approves Four New Platforms
The Securities and Futures Commission (SFC) announced on Wednesday that it has granted licenses to HKbitEX, Accumulus, DFX Labs and EX.IO under an “expedited licensing process.”
These approvals come after the exchanges addressed regulatory feedback from on-site audits. The SFC has previously licensed three other platforms: OSL, HashKey, and HKVAX.
Paving the Way for Crypto Expansion
The latest approvals underscore Hong Kong’s commitment to promoting a crypto-friendly environment. In June 2023, the territory launched a comprehensive licensing regime for virtual asset trading platforms (VATPs), enabling licensed exchanges to offer retail trading services.
Eric Yip, SFC’s Enforcement Director of Intermediaries, highlighted the regulator’s proactive approach to speeding up the licensing process.
“We have been in close contact with senior management and final controllers of VATPs to ensure regulatory standards are met, which has expedited the process,” Yip said in a statement.
New Licensing Requirements
In a separate circular issued on Wednesday, the SFC detailed enhanced licensing procedures. Applicants must undergo:
On-site inspection of activities.
Comprehensive assessments of platform policies, systems and controls, which must be approved by a financial advisor.
The SFC will oversee this second stage assessment through tripartite engagements involving the regulator, the applicant platform and external assessors. Once platforms meet these requirements, restrictions on their scope of work will be lifted.
Future Developments
Acting Secretary of Financial Services and Treasury Joseph Chan announced plans for an advisory panel to provide guidance to licensed crypto trading platforms. This panel is expected to be operational in early 2025 and further develop the regulatory framework.
*This is not investment advice.