Hong Kong regulators assure more crypto exchange approvals before year end

Based on Hong Kong’s Securities and Futures Fee (SFC), the regulator is keen to approve extra licenses for crypto exchanges. Nevertheless, it reminded them that they needed to bear strict compliance checks first.

The SFC has launched a licensing framework that each one exchanges should adjust to. This framework addresses key points comparable to AML practices, investor safety and secure custody of belongings.

The SFC’s Digital Asset Licensing Framework

After an inspection interval of roughly 5 months, the committee discovered that a few of the digital asset buying and selling corporations that submitted to the approval course of are falling brief in key areas such because the custody of buyer belongings and different safety practices.

This led to a few exchanges: OSL, Hashkey and HKVAX being absolutely licensed. Eleven others, together with Crypto.com, have been granted a provisional license, pending when all points are resolved.

These newly issued licenses are anticipated to boost Hong Kong’s fame as a world cryptocurrency hub.

Dr. Eric Yip, govt director of intermediaries on the Securities and Futures Fee, confirmed that exchanges discovered the suggestions helpful in growing their companies. He additionally mentioned they’re keen to commit sources to resolve the problems recognized in the course of the audit. He famous that regulatory oversight of the digital asset financial system will push market individuals to function inside authorized boundaries, which on steadiness is constructive for digital asset adoption.

Hong Kong’s digital asset-friendly regime

Since its introduction, crypto regulation has been a divisive subject. Up to now, Hong Kong has additionally not been type to digital belongings. On the time, its unstable nature, issues about investor safety and cash laundering had been cited.

After JPEX, an unlicensed crypto alternate, defrauded greater than 2,600 individuals of roughly $105 million, the Hong Kong authorities took motion to guard its residents. Since then, the area has made a robust push to grow to be a world hub for digital belongings.

The SFC has emerged as one of many regulators with a complete coverage concerning the regulation of digital belongings. Hong Kong additionally established itself as one pioneer by being the primary to launch crypto ETFs in Asia, simply three months after the monetary merchandise launched within the US