Hong-Kong Regulator to Approve More Crypto Exchange Licenses by Year-End

SUMMARY

Julia Leung, CEO of the Hong Kong Securities and Futures Commission, stated that the regulator plans to make progress by year-end, including issuing licenses in batches.
Recently, the SFC granted its third license under the new crypto trading regime to HKVAX.

Hong Kong’s financial regulator has issued its third license under the new crypto trading platform licensing regime, with plans to favor additional platforms on the “deemed-to-be-licensed” list by the year’s end. Julia Leung, chief executive of the Hong Kong Securities and Futures Commission (SFC), reported that HKVAX has been authorized to operate as a crypto exchange, taking after past approvals for OSL and HashKey.

Leung highlighted that 11 platforms are as of now on the SFC’s list of deemed-to-be-licensed virtual asset trading candidates. The regulator has completed the beginning stage of onsite inspections and has requested alterations from these candidates. The SFC aims for noteworthy progress by year-end, including batch issuance of licenses.

HKVAX stated that it specializes in security token offerings, real-world resource tokenization, over-the-counter trading, exchange, and custody services. Anthony Ng, co-founder and CEO of HKVAX, emphasized that this is in line with Hong Kong’s desire to fortify its status as a financial center and international resource management center. He moreover highlighted that getting the permit confirms HKVAX’s commitment and illustrates Hong Kong’s intention to lead in the virtual resource industry.

Since launching its crypto licensing regime in June 2023, Hong Kong has effectively invited crypto firms, empowering authorized exchanges to offer retail trading services. However, concerns have been raised by Hong Kong lawmaker Duncan Chiu regarding the “excessively stringent” regulations for crypto exchanges seeking licenses. He criticized these rules for hindering major international exchanges from entering the market. Strikingly, firms such as OKX, Gate.io, and HTX have withdrawn their license applications, while Bullish and Crypto.com remain on the SFC’s list of candidates.