The
Securities and Futures Fee (SFC) of Hong Kong unveiled
a streamlined licensing method for digital asset buying and selling platforms (VATPs),
marking one other important shift within the area’s cryptocurrency regulatory
panorama in current months.
Hong Kong Streamlines Crypto
Buying and selling Platform Licensing Course of
The brand new
framework eliminates the earlier two-phase evaluation system in favor of a
single, complete exterior analysis. Beneath this streamlined course of, VATP
candidates should first implement their operational infrastructure earlier than
present process an exterior evaluation, with the SFC actively collaborating within the
analysis course of.
“The SFC is
dedicated to fostering a wholesome ecosystem and a strong regulatory framework
for the event of digital belongings in Hong Kong,” stated Dr Eric Yip, the
SFC’s Government Director of Intermediaries.
“With the
new method, we are going to improve our collaboration with VATP candidates, offering
them with constructive and well timed suggestions, thereby enabling totally compliant
VATPs to carry their providers to traders extra swiftly.”
This marks
one other important change following
the June 1, 2024 choice by the SFC to as soon as once more permit retail shoppers to
commerce cryptocurrencies. Nonetheless, the regulator additionally imposed further
tasks on corporations within the sector, requiring compliance with laws
or going through authorized penalties. The most recent transfer goals to simplify the method of
acquiring a license.
The
revamped course of introduces a number of improvements:
Tripartite
Engagement – The
SFC will change into a direct get together to the evaluation course of, working alongside the
platform operator and exterior assessor to make sure regulatory compliance.Streamlined
Analysis – Candidates
should now deploy all methods and controls earlier than the exterior evaluation begins,
making certain a extra sensible and environment friendly analysis of operational readiness.
As lately
reported by Finance Magnates, in October, 11
crypto platforms have been nonetheless underneath regulatory assessment after a number of months.
The business criticized the native regulator for overly strict laws,
main a number of main gamers, together with OKX and Bybit, to withdraw from the
utility course of. SFC representatives hope the present modifications will
encourage exchanges to enter the market.
This
regulatory growth follows the licensing of 4 VATPs in December 2024,
reflecting Hong Kong’s efforts to strengthen its place as a digital asset
hub.
This text was written by Damian Chmiel at www.financemagnates.com.
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