Hong Kong's Securities and Futures Commission (SFC) has released a comprehensive list of two authorized cryptocurrency trading platforms and 17 applicants awaiting approval under the recently implemented regulations, which came into force on June 1. The SFC emphasizes that operating without a license is a criminal offense and affirms its commitment to taking appropriate action against any violations of the law.
Hong Kong's SFC has introduced new regulations for virtual asset trading platforms (VATPs) that took effect on June 1. These regulations require all VATPs operating in or marketing to Hong Kong investors to obtain a license from the SFC or be considered as "deemed-to-be-licensed VATP applicants," as previously explained by the regulator.
The purpose of these new regulations is to strengthen investor protection and market integrity by implementing comprehensive application requirements, which include evaluating management experience, industry qualifications, and external attestations. The rules also outline specific criteria for token admission, anti-money laundering (AML) measures, and restrictions on proprietary trading. Additionally, platforms must have adequate insurance or compensation arrangements to mitigate custodial risks.
As of the June 1 deadline, OSL Digital Securities Ltd. (OSL Exchange) and Hash Blockchain Ltd. (HashKey Exchange) are the only licensed VATPs in Hong Kong.
The SFC has published a list of applicants for crypto trading platforms, clearly stating that these platforms are not yet licensed and may not meet regulatory standards. Investors are advised to verify licenses and exercise caution when dealing with unlicensed or provisionally licensed platforms, as they could face closure if they fail to obtain approval.
Among the applicants for crypto trading platforms are Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd., Hong Kong Virtual Asset Exchange Ltd., Victory Fintech Company Ltd., Panthertrade (Hong Kong) Ltd., Accumulus GBA Technology (Hongkong) Co. Ltd., DFX Labs Company Ltd., Newbx Limited, Thousand Whales Technology (BVI) Ltd., Highblock Ltd., YAX (Hong Kong) Ltd., Bullish (GI) Ltd., Foris DAX HK Ltd., Whalefin Markets Ltd., Flying Hippo Technologies Ltd., hi5 (Hong Kong) Ltd., and Bitcoin World Technology Ltd.
Several crypto exchanges, including Okx and Gate.hk, have already announced their decision to cease operations in Hong Kong as a result of the new regulatory framework coming into effect.
What are your thoughts on the fact that Hong Kong has 17 applicants awaiting approval under the new regulations? Let us know in the comments section below.