Hong Kong SFC to Fast-Track Licensing for Crypto Exchanges, Approvals Expected by Year-End

Author

Jai Pratap

Author

Jai Pratap

About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Author Profile

Share

Copied

Last updated: 

October 28, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Speaking at the Fintech Week 2024, Dr. Eric Yip, Executive Director of Intermediaries at the the Securities and Futures Commission (SFC) of Hong Kong, outlined the regulator’s strategic initiatives for advancing Hong Kong’s virtual asset trading platform (VATP) sector.

A core focus for the SFC is expediting the licensing process for VATP applicants with deemed-to-be-licensed status. This fast-track approach will rely on-site inspections and ongoing discussions with senior management and controllers of these platforms, ensuring compliance and transparency.

The SFC anticipates that the first batch of formal licenses for VATP applicants will be granted by the end of this year.

There are 14 crypto trading platforms that are currently under ‘deemed-to-be-licensed’ status as per the SFC website, including Crypto.com and Matrixport. So far only three crypto exchanges have received full license from the Hong Kong regulator.

SFC Plans to Launch Consultative Panel for VATPs

In addition to streamlining licensing, the SFC plans to launch a consultative panel for VATPs in early 2025. This panel, which will include representatives from each licensed VATP, aims to facilitate dialogue between the regulator and industry stakeholders, helping inform the SFC’s future policy decisions. Insights gathered from the panel, alongside input from other stakeholders, will contribute to a forthcoming white paper on regulatory priorities for the virtual asset industry.

Further regulatory steps include collaborating with the Hong Kong SAR Government and other regulatory bodies to develop frameworks governing virtual asset trading services and custody provisions.

Supporting tokenisation initiatives also remains a priority for the SFC, which is participating in the Hong Kong Monetary Authority’s Project Ensemble. This project aims to build the infrastructure necessary for tokenization in the asset management sector, setting industry standards for the settlement of tokenized assets.

“The SFC will continue to adopt a pragmatic and proactive approach in building and advancing a holistic regulatory framework,” Dr. Yip said, stressing the regulator’s dual commitment to investor protection and market growth.