KeyTakeaways:
Hong Kong grants provisional licenses to 4 new crypto exchanges, totaling seven licensed platforms. Exchanges should meet additional regulatory necessities earlier than full licensing in second part. Hong Kong’s swift licensing course of attracts crypto corporations whereas making certain investor safety.
Hong Kong is continuous its efforts to place itself as a worldwide crypto hub, because the Hong Kong Securities and Futures Fee (SFC) lately permitted 4 new digital asset buying and selling platforms (VATPs) below its swift licensing course of.
This brings the overall variety of licensed exchanges within the metropolis to seven. Nonetheless, these exchanges should nonetheless cross further regulatory hurdles earlier than absolutely working with out restrictions. The swift licensing course of is designed to hurry up approvals, a response to the rising demand for clearer and extra environment friendly crypto laws within the area.
On Dec 19, the SFC introduced that 4 new corporations had handed preliminary inspections and had been granted provisional approval to function below the primary part of the licensing course of.
These platforms, Accumulus GBA Expertise Co Ltd, DFX Labs Co Ltd, Hong Kong Digital Belongings EX Ltd, and Thousand Whales Expertise Ltd, at the moment are licensed to conduct enterprise inside a restricted scope whereas engaged on assembly additional regulatory necessities.
The swift licensing course of was established to assist digital asset platforms start working extra shortly whereas making certain they meet the SFC’s requirements. This streamlined strategy goals to stability fostering innovation within the crypto house and sustaining investor safety.
The Subsequent Steps for Full Licensing
Regardless of receiving preliminary approval, these exchanges nonetheless must clear the second part of the regulatory course of. This stage assesses whether or not the exchanges’ inside insurance policies, methods, and procedures align with regulatory necessities.
Moreover, platforms should bear assessments to make sure their compliance with anti-money laundering (AML) and counter-financing terrorism (CFT) guidelines.
In keeping with the SFC’s up to date strategy, the second part will contain a extra direct engagement between regulators and the exchanges’ senior administration. An authorized public accountant can even be required to confirm that the platform’s insurance policies are in step with the rules set for VATPs.
Hong Kong’s Rising Crypto Panorama
The current approvals sign Hong Kong’s ongoing efforts to develop its crypto market and improve regulatory readability. Since implementing the swift licensing course of, town has already seen approvals for different platforms like OSL, HKVAX, and HashKey earlier this yr.
Nonetheless, the complexity of the licensing course of has led some main exchanges, together with OKX, to withdraw from the market.
Whereas a number of functions are nonetheless below evaluate, the SFC’s swift licensing technique addresses these challenges and makes Hong Kong a beautiful vacation spot for crypto companies.
