Hong Kong’s Securities and Futures Commission (SFC) has doubled the number of licensed virtual asset trading platforms (VATPs). In fact, it granted approvals to four new companies.
New licenses are granted to Accumulus GBA Technology (Hong Kong), DFX Labs, Hong Kong Digital Asset EX and Thousand Whales Technology (BVI). They received their licenses on December 18, 2024, joining existing platforms HashKey, OSL and HKVAX.
Approvals fall under SFCs accelerated licensing process for “deemed to hold a license» VAT applicants.
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Exchanges have undergone on-site inspections
As part of this process, the exchanges were subject to on-site inspections. Key regulatory requirements have been met, such as protection of client assets, know your customer (KYC) procedures, and cybersecurity measures.
“WWe have proactively collaborated with VAT senior managers and ultimate controllers which helps enforce our expected regulatory standards and accelerate our licensing process for VATPs,» declared Eric Yip, SFCs executive director of intermediaries.
The newly approved stock exchanges will initially operate within a restricted framework. They are required to perform vulnerability assessments and penetration tests with third-party verification before restrictions can be lifted.
Additionally, the SFC will closely supervise this process. The regulator has published a circular describing its expectations regarding VATPs.
Currently, all approved platforms are authorized to trade securities, offer automated trading services and operate as VATPs. Currently, 11 additional VATPs are in service. of the applicant list, seven of which have “deemed to hold a license» Status.
JUST IN:
Hong Kong SFC approves and lists four new #Bitcoin and cryptocurrency trading platforms.
China is preparing
– Bitcoin Magazine (@BitcoinMagazine) December 18, 2024
Hong Kong SFC approves and lists four new 
THE SFCs The website warns users to only trade on licensed platforms. However, it is possible to interact with exchanges that hold “deemed to hold a license» Status. This decision aligns with SFCs broader strategy to regulate and strengthen the framework for cryptocurrency trading in the region.
Julia Leung, CEO of SFC, said: that new licenses would be granted in batches as part of a regulatory roadmap until 2026. The plan aims to improve surveillance, support tokenization of real-world assets, and explore blockchain. technology potential in financial markets.
Hong Kong The current retail cryptocurrency market remains limited to four available tokens: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).
Cryptocurrency retail trading has been officially legalized in August 2023.
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Hong Kong Speeds Up Crypto Regulation
Recently, the Hong Kong government announced plans to implement a mandatory reporting framework for crypto assets by 2026.
The proposed framework for reporting crypto assets will require taxpaying residents In the country to annually report their crypto accounts and transactions.
In addition, Hong Kong also said it was being deployed a plan to exempt private equity funds, hedge funds and investment vehicles of ultra-wealthy individuals from tax on gains from cryptocurrencies, private credit investments and other assets.
The proposal claims that taxation is “one of the key considerations» for asset managers when choosing where to base their operations. By creating a “conducive environment,» the Honk Kong government aims to attract global investors and crypto businesses.
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The post Hong Kong Expands Its Crypto Footprint with Licenses for Four More Exchanges appeared first on 99Bitcoins.
