Hong Kong approves 4 new crypto trading platform licenses in regulatory push

Hong Kong’s Securities and Futures Fee (SFC) has issued licenses to 4 digital asset buying and selling platforms (VATPs), marking one other step in its fast-tracked regulatory framework, in accordance with a Dec. 18 assertion.

The licensed platforms embrace Accumulus GBA Know-how Ltd, DFX Labs Firm Ltd, Hong Kong Digital Asset EX Restricted, and Thousand Whales Know-how (BVI) Ltd.

This brings the overall variety of licensed crypto buying and selling platforms within the Asian metropolis allowed to serve retail prospects to seven, together with HashKey Group, OSL, and the Hong Kong Digital Asset Change (HKVAX).

Licensing regimes

The SFC acknowledged that the just lately licensed companies underwent rigorous on-site inspections earlier this yr as a part of the rules launched in June. The inspections recognized areas for enchancment, which the companies addressed to safe their restricted licenses.

The licenses include preliminary restrictions, however these will probably be lifted after the platforms cross a second-phase evaluation by exterior evaluators. The method will make sure the platforms meet the required regulatory requirements for full operational performance.

The SFC emphasised that the VATPs should conduct vulnerability assessments and penetration checks via unbiased third events. These evaluations are essential to sustaining safety and align with international worldwide requirements.

The SFC’s Government Director of Intermediaries, Eric Yip, acknowledged that the licensing course of concerned shut collaboration with the VATPs’ management groups. He highlighted the Fee’s twin give attention to defending buyers whereas fostering development in Hong Kong’s digital asset ecosystem.

Yip stated:

“We purpose to strike a steadiness between safeguarding the pursuits of buyers and facilitating steady improvement for the digital asset ecosystem in Hong Kong.”

In the meantime, this improvement aligns with the SFC’s broader plan to develop the licensing of crypto companies by year-end. In October, the regulator revealed that 11 extra VATPs are underneath license consideration, with approvals anticipated to roll out in batches.

The SFC’s proactive method highlights Hong Kong’s dedication to changing into a world hub for digital asset innovation whereas sustaining strong investor safeguards.