The Hong Kong Securities and Futures Fee (SFC) is reportedly set to subject extra licenses to crypto companies by the yr’s finish, native information outlet Hong Kong 01 reported on Oct. 7.
This follows the latest approval of HKVAX because the third licensed crypto trade within the metropolis.
‘Deemed to be licensed’
SFC CEO Julia Leung said that the company plans to grant licenses in batches. This technique will enable extra crypto corporations to progressively enter the market.
Leung talked about that 11 Digital Asset Buying and selling Platforms (VATPs) are at present on the regulator’s checklist of potential licensees. The SFC has accomplished the primary spherical of inspections and suggested these corporations to make mandatory changes.
She careworn that the SFC is working to strengthen the regulatory framework for digital belongings. Leung additionally warned that firms failing to satisfy the required requirements can be disqualified from the licensing course of.
Leung stated:
“Candidates who don’t meet the necessities will lose their {qualifications} for licensing, whereas candidates who meet the necessities can be granted a license conditionally.”
Lengthy-term regulatory plans
Leung additionally outlined the SFC’s roadmap for 2024-2026 and stated Hong Kong plans to advance laws for digital asset platforms, promote the tokenization of conventional belongings, and discover regional blockchains and Web3 applied sciences. She additionally expects the regulatory framework to be finalized by subsequent yr.
On over-the-counter (OTC) crypto providers, Leung revealed {that a} new licensing system has been launched for OTC custody providers. The initiative is searching for suggestions from trade individuals to fine-tune the strategy.
Analysts famous that these efforts are a part of Hong Kong’s broader push to place itself as a digital asset hub. Whereas the area’s clear laws are designed to draw companies, the strict guidelines — aimed toward investor safety and stopping cash laundering — have created challenges for some world platforms, together with Binance.