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 section. Hong Kong’s swift licensing course of attracts crypto companies whereas making certain investor safety.
Hong Kong is continuous its efforts to place itself as a world crypto hub, because the Hong Kong Securities and Futures Fee (SFC) just lately permitted 4 new digital asset buying and selling platforms (VATPs) underneath its swift licensing course of.
This brings the entire variety of licensed exchanges within the metropolis to seven. Nonetheless, these exchanges should nonetheless move extra regulatory hurdles earlier than totally 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 companies had handed preliminary inspections and have been granted provisional approval to function underneath the primary section of the licensing course of.
These platforms, Accumulus GBA Expertise Co Ltd, DFX Labs Co Ltd, Hong Kong Digital Property 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 rapidly 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 have to clear the second section of the regulatory course of. This stage assesses whether or not the exchanges’ inner insurance policies, techniques, 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.
According to the SFC’s up to date strategy, the second section will contain a extra direct engagement between regulators and the exchanges’ senior administration. A licensed public accountant will 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 latest approvals sign Hong Kong’s ongoing efforts to develop its crypto market and improve regulatory readability. Since implementing the swift licensing course of, the 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 underneath evaluate, the SFC’s swift licensing technique addresses these challenges and makes Hong Kong a gorgeous vacation spot for crypto companies.
