The Hong Kong Securities and Futures Fee (SFC) is reportedly set to concern extra licenses to crypto companies by the 12 months’s finish, native information outlet Hong Kong 01 reported on Oct. 7.
This follows the current approval of HKVAX because the third licensed crypto trade within the metropolis.
‘Deemed to be licensed’
SFC CEO Julia Leung acknowledged that the company plans to grant licenses in batches. This technique will enable extra crypto companies to steadily enter the market.
Leung talked about that 11 Digital Asset Buying and selling Platforms (VATPs) are at the moment on the regulator’s checklist of potential licensees. The SFC has accomplished the primary spherical of inspections and suggested these companies to make mandatory changes.
She burdened that the SFC is working to strengthen the regulatory framework for digital belongings. Leung additionally warned that corporations failing to satisfy the required requirements might be disqualified from the licensing course of.
Leung mentioned:
“Candidates who don’t meet the necessities will lose their {qualifications} for licensing, whereas candidates who meet the necessities might be granted a license conditionally.”
Lengthy-term regulatory plans
Leung additionally outlined the SFC’s roadmap for 2024-2026 and mentioned Hong Kong plans to advance rules for digital asset platforms, promote the tokenization of conventional belongings, and discover regional blockchains and Web3 applied sciences. She additionally expects the regulatory framework to be finalized by subsequent 12 months.
On over-the-counter (OTC) crypto companies, Leung revealed {that a} new licensing system has been launched for OTC custody companies. The initiative is looking for suggestions from trade contributors to fine-tune the strategy.
Analysts famous that these efforts are a part of Hong Kong’s broader push to place itself as a digital asset hub. Whereas the area’s clear rules are designed to draw companies, the strict guidelines — geared toward investor safety and stopping cash laundering — have created challenges for some world platforms, together with Binance.
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