Speaking at the Fintech Week 2024, Dr. Eric Yip, Executive Director of Intermediaries at the SFC of Hong Kong, outlined the regulator’s strategic initiatives for advancing Hong Kong’s 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.
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.
The SFC anticipates that the first batch of formal licenses for VATP applicants will be granted by the end of this year.
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.
The SFC plans to launch a consultative panel for VATPs in early 2025.
“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.