Hong Kong approves 4 new crypto trading platform licenses in regulatory push

Hong Kong’s Securities and Futures Fee (SFC) has granted licenses to 4 digital asset buying and selling platforms (VATPs), marking one other step in its accelerated regulatory framework, in keeping with a December 18 assertion.

The licensed platforms embody Accumulus GBA Know-how Ltd, DFX Labs Firm Ltd, Hong Kong Digital Asset EX Restricted and Thousand Whales Know-how (BVI) Ltd.

This brings the whole variety of licensed crypto buying and selling platforms within the Asian metropolis which are allowed to serve retail shoppers to seven, together with HashKey Group, OSL and the Hong Kong Digital Asset Change (HKVAX).

Licensing regimes

The SFC said that the newly licensed corporations underwent stringent on-site inspections earlier this yr as a part of the rules launched in June. The inspections revealed areas for enchancment, which the businesses have addressed to safe their restricted licenses.

The licenses include preliminary restrictions, however these will likely be lifted after the platforms move a second-stage overview by third-party reviewers. The method ensures that the platforms meet the required regulatory requirements for full operational performance.

The SFC emphasised that VATPs should conduct vulnerability assessments and penetration testing by impartial third events. These assessments are essential to sustaining security and are per international worldwide requirements.

Eric Yip, SFC Government Director of Intermediaries, said that the licensing course of concerned shut collaboration with the VATPs’ management groups. He highlighted the Fee’s twin give attention to defending buyers and selling progress in Hong Kong’s digital asset ecosystem.

Jippie stated:

“We try to strike a stability between defending buyers’ pursuits and facilitating the continued improvement of the digital asset ecosystem in Hong Kong.”

In the meantime, this improvement aligns with the SFC’s broader plan to develop licensing for crypto companies by the tip of the yr. In October, the regulator introduced that 11 extra VATPs had been being thought of for licensing, with approvals anticipated to be rolled out in batches.

The SFC’s proactive strategy highlights Hong Kong’s dedication to changing into a world hub for digital asset innovation, whereas sustaining strong investor safeguards.

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