Hong Kong will approve more crypto exchange licenses before year-end
The SFC of Hong Kong intends to fortify its status as the premier digital asset center in Asia by issuing additional crypto exchange licenses by the conclusion of 2024.
The Securities and Futures Commission (SFC) of Hong Kong has declared its intention to grant additional licenses to cryptocurrency exchanges by the conclusion of 2024. This decision was made subsequent to a five-month review in which only three platforms were granted full licenses, while 11 were granted provisional licenses. This initially raised concerns regarding the need for additional approvals.
Nevertheless, the most recent announcement indicates that there is a renewed initiative to establish Hong Kong as a digital asset center in Asia.
Eric Yip, the executive director of SFC, verified during the city’s annual Fintech Week that a definitive list of licensed exchanges is anticipated by the end of the year. This is consistent with Hong Kong’s objective to foster a crypto-friendly environment in conjunction with its recent endeavors to fortify its status as a financial hub. Yip stated that the majority of applicants have responded favorably to SFC feedback, with a particular emphasis on enhancing their operations through enhanced transparency and improved investor protections.
Once exchanges satisfy SFC standards, they will be granted licenses with specific limitations until a third-party evaluation, conducted in collaboration with the SFC, confirms complete compliance. The purpose of this final licensing phase is to guarantee that these platforms adhere to stringent regulatory requirements and rectify any prior operational deficiencies.
Additionally, in early 2025, a consultative council will be established to promote ongoing regulatory collaboration and dialogue, which will include the SFC and authorized exchanges. Furthermore, Hong Kong is in the process of establishing a framework for over-the-counter (OTC) crypto trading platforms and custodians with the objective of establishing a “more regulated, secure environment” for both institutional and retail investors. Yip underscored the necessity of structured regulations for Hong Kong to continue to be a competitive financial center, as an increasing number of digital asset businesses seek regulatory clarity and security in the region.
Also Read: BlackRock Increases Bitcoin Holdings and Invests $1 Billion