Hong Kong set to expand crypto licensing by year-end amid push to become digital asset hub

The Hong Kong Securities and Futures Fee (SFC) will reportedly concern extra licenses to crypto corporations by the top of the 12 months, based on a neighborhood information outlet Hong Kong 01 reported on October 7.

This follows the latest approval of HKVAX because the third licensed crypto change within the metropolis.

‘Deemed to be licensed’

SFC CEO Julia Leung said that the company plans to grant licenses in batches. This technique will permit extra crypto corporations to steadily enter the market.

Leung mentioned 11 digital asset buying and selling platforms (VATPs) are presently on the regulator’s record of potential licensees. The SFC has accomplished the primary spherical of inspections and suggested these corporations to make the mandatory changes.

She emphasised that the SFC is working to strengthen the regulatory framework for digital belongings. Leung additionally warned that corporations that don’t meet the required requirements can be excluded from the licensing course of.

Leung mentioned:

“Candidates who don’t meet the necessities will lose their {qualifications} for a allow, whereas candidates who do meet the necessities can be granted a conditional allow.”

Lengthy-term regulatory plans

Leung additionally outlined the SFC’s roadmap for 2024-2026, saying Hong Kong plans to advance regulation of digital asset platforms, promote the tokenization of conventional belongings and discover regional blockchains and Web3 applied sciences. She additionally expects the regulatory framework to be finalized subsequent 12 months.

Concerning over-the-counter (OTC) crypto companies, Leung revealed {that a} new licensing system has been launched for OTC custody companies. The initiative is in search of suggestions from business individuals to refine the method.

Analysts famous that these efforts are a part of Hong Kong’s broader try to place itself as a digital asset hub. Whereas the area’s clear rules are supposed to draw companies, the strict guidelines – aimed toward defending buyers and stopping cash laundering – have created challenges for some world platforms, together with Binance.

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