The Hong Kong Securities and Futures Fee (SFC) is reportedly set to subject 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 said that the company plans to grant licenses in batches. This technique will enable extra crypto corporations to regularly enter the market.
Leung talked about that 11 Digital Asset Buying and selling Platforms (VATPs) are presently on the regulator’s record of potential licensees. The SFC has accomplished the primary spherical of inspections and suggested these corporations to make vital changes.
She confused that the SFC is working to strengthen the regulatory framework for digital property. Leung additionally warned that corporations failing to satisfy the required requirements shall be disqualified from the licensing course of.
Leung stated:
“Candidates who don’t meet the necessities will lose their {qualifications} for licensing, whereas candidates who meet the necessities shall be granted a license conditionally.”
Lengthy-term regulatory plans
Leung additionally outlined the SFC’s roadmap for 2024-2026 and stated Hong Kong plans to advance rules for digital asset platforms, promote the tokenization of conventional property, 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 providers, Leung revealed {that a} new licensing system has been launched for OTC custody providers. The initiative is in search of suggestions from business individuals to fine-tune the method.
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 international platforms, together with Binance.
