The Securities and Futures Commission (SFC), which is in charge of overseeing finances in Hong Kong, wants to give more licenses to bitcoin platforms and digital asset firms before the end of the year. The goal of the move is to improve the rules for trading sites for virtual assets in the area.In a recent statement, SFC CEO Julia Leung said that the commission is working on giving licenses to some of the 11 companies that are currently trying to get permission to run virtual asset trading platforms (VATPs).
Leung said that the commission would give these licenses out in groups so that crypto companies would have an easier time staying in compliance.There are 16 companies waiting for licensing choices right now. The SFC has already conducted on-site reviews for eleven of these companies, but cautions against doing business with them as they are still in the process of obtaining a license.
Leung emphasized that companies fulfilling the licensing requirements can anticipate the approval of their apps shortly.The SFC recently released its strategic vision for 2024–2026, which includes plans to improve rules for crypto platforms and look into new technologies, such as tokenizing Real World Assets (RWAs).
Despite criticism for its slow pace, Leung remains optimistic about the completion of the legal process for crypto assets by the end of next year.The recent acceptance of HKVAX as the third licensed exchange in Hong Kong (along with OSL and HashKey) shows that the SFC is serious about making sure buyers can trade safely.
The push for regulation comes after a big incident involving the now-defunct crypto exchange JPEX, which scammed more than 2,500 investors and made the SFC tighten its grip on the industry.Hong Kong wants to be a global center for cryptocurrency and fintech innovation. The SFC’s licensing efforts show that it is committed to both following the rules and protecting investors in the fast-changing digital asset space.
