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Hong Kong’s Securities and Futures Commission (SFC) is getting ready to issue new licenses for cryptocurrency exchanges and crypto-related companies this year.
The announcement aligns with the SFC’s 2024 to 2026 goals, which include enhancing the landscape of Hong Kong’s capital market to strengthen global competitiveness and spearheading the transformation of Hong Kong’s financial market with technology and ESG, amongst other things.
Leung Fengyi, CEO of China’s Securities Regulatory Commission, spoke about the efforts to improve the Virtual Asset Trading Platform (VATP). He noted that the SFC has already issued licenses to three crypto exchanges: OSL Exchange, HashKey Exchange, and the Hong Kong Virtual Asset Exchange (HKVAX).
Fengyi also highlighted the importance of strengthening the current regulatory system for virtual asset trading platforms, supporting the tokenization of traditional products, and adopting regional chains and Web3 technologies. These steps are crucial for transforming Hong Kong’s financial market.
China’s Securities Regulatory Commission to Focus on Custody and OTC Services
Currently, 11 exchange platforms are seeking licenses from the SFC. Fengyi provided some insights into the licensing process, stating that the first phase of the on-site review is complete, and the applicants have been asked to make some changes to their applications.
The end goal for the SRC is to make significant progress before the end of the year, and issuing licenses in batches is one of the many milestones it intends to attain.
“Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally.” Liang Fengyi asserted.
Bringing clarity to over-the-counter (OTC) related services, Fengyi explained that a new licensing system designed for OTC and crypto custody services has been developed by the Chinese Securities Regulatory Commission.
It is worth noting that Cryptocurrency adoption in Hong Kong has been on the rise this year. According to the 2024 Global Cryptocurrency Adoption Index Rankings published by Chainalysis, Hong Kong has recorded the highest growth in cryptocurrency activities in the East Asian region.
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