As a seasoned researcher with a keen interest in the dynamic world of finance and technology, I find myself intrigued by the recent developments in Hong Kong’s crypto landscape. The planned approval of a batch of new licenses for Virtual Asset Trading Platforms (VATPs) by the end of this year is a significant stride towards regulatory clarity and legitimacy for the industry.
By the end of this year, it is expected that the Hong Kong Securities and Futures Commission will grant approval for several new cryptocurrency licenses. Currently, 11 different cryptocurrency platforms are under consideration for these licenses.
In a conversation with Hong Kong 01, the head of the China Securities Regulatory Commission (CSRC), Liang Fengyi, disclosed that they plan to distribute licenses to Virtual Asset Trading Platforms in groups.
Over the past little while, the Securities and Futures Commission (SFC) has granted licenses to three cryptocurrency trading platforms functioning within the area: the Hong Kong Crypto Asset Exchange, the OSL Digital Securities Exchange, and HashKey Digital Assets Exchange.
Besides the three already approved platforms, there are eleven additional ones that have submitted applications for a license issued by the Securities and Futures Commission (SFC) and are now in the process of being reviewed and approved.
Liang Fengyi shared that regulatory bodies have completed the initial inspections at the applicant sites, and they’ve requested any required adjustments be made by the applicants.
She stated that the SFC aims to make significant progress on regulating virtual assets by the end of the year, by issuing a batch of licenses for VATPs.
According to Fengyi, those who don’t fulfill the necessary prerequisites won’t get to keep their eligibility for licensing. On the other hand, individuals who satisfy the requirements will initially receive a conditional license.
In line with their strategic plan for 2024-2026, Liang Fengyi stated that Hong Kong’s regulatory bodies aim to foster the growth of regulations for virtual asset trading platforms, encourage the digitization of conventional products through tokenization, and leverage regional blockchain networks and web3 fundamental technologies.
“The entire framework will be completed at least next year,” she said.
Regarding the over-the-counter (OTC) services for cryptocurrencies, Liang Fengyi noted that the China Securities Regulatory Commission (CSRC) has introduced a fresh licensing framework for these crypto OTC custody services, seeking input from professionals in the field.
Starting mid-September 2024, the Securities and Futures Commission of Hong Kong partnered with the Customs and Excise Department to grant licenses for over-the-counter cryptocurrency trading services. At that time, many crypto platforms in Hong Kong faced difficulties obtaining licenses because they did not comply with government requirements regarding client asset management and failed to adequately address cybersecurity risks.
30th September marked the moment when ZA Bank was granted a license by the Securities and Futures Commission (SFC) in Hong Kong, making it the city’s inaugural virtual asset bank following a comprehensive evaluation lasting a year.
In Hong Kong, it’s essential nowadays for cryptocurrency platforms to obtain licenses, given that financial authorities have been strengthening regulations against unauthorized exchanges. This move aims to establish a secure and regulated digital asset trading environment.
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2024-10-07 14:10