The Securities and Futures Commission (SFC) of Hong Kong is worried about a few bitcoin platforms that are being looked at for full licenses right now. These platforms have been given preliminary approvals, but they have not yet been given full licenses because they have not met all the legal requirements.
Recent checks by the SFC showed that some of these platforms are not doing enough to protect themselves from cybercrime. There are also worries that too few leaders are being asked to keep an eye on the custody of client funds. The markets’ licenses are in danger because of these problems, since the SFC has made it clear that they must fully follow its strict rules at all times.
The trades in question were given a temporary license that let them run while they waited for their full license. But as of June 1, it is now illegal to run a virtual asset trading platform (VATP) in Hong Kong without a license. The SFC has promised to take action against any businesses that don’t follow the rules.
Some of the well-known crypto platforms that still need full licenses are Crypto.com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, and others. The SFC hasn’t said which of these exchanges didn’t meet its standards, but it has made it clear that any platform that can’t fix major problems found during checks could lose its temporary license or have its application for a full license turned down.
The government of Hong Kong wants to make it a world center for financial technology, with a focus on digital assets. The city just recently announced a plan to make crypto rules stricter over the next 18 months. This means hiring smart people in technology, building new facilities, and putting in place strong laws.
Last year, the SFC put out draft rules for virtual asset trading sites as a way to get buyers and crypto exchanges to join the new license system. Even with all of these attempts, only OSL and HashKey have been able to get full rights so far. OKX, Bybit, and Huobi HK are some of the other companies that have decided to pull their apps.
As the SFC is still very strict about compliance, getting full licensing in Hong Kong is proving to be hard. A lot of crypto companies in the area are worried about their future as the city keeps working to improve its rules.
