Coinspeaker Hong Kong Approves Four More Crypto Exchanges Under Tightened Regulations
Hong Kong has taken another significant step in its efforts to regulate the cryptocurrency market. On December 18, the Securities and Futures Commission (SFC) granted operating licenses to four virtual asset trading platforms (VATPs), bringing the total number of licensed exchanges in the region to seven.
The newly approved platforms—Hong Kong Digital Asset EX Limited, Accumulus GBA Technology Co., Limited, DFX Labs Company Limited, and Thousand Whales Technology—are now part of Hong Kong’s tightened regulatory framework which requires all VATPs to obtain full licenses before offering services within the region.
Expedited Licensing Process and Key Conditions
Unlike the first batch of licensed platforms, the four new exchanges were approved under an expedited licensing process. This process followed months of risk-based on-site inspections introduced earlier this year to ensure platforms meet regulatory requirements.
While these exchanges can now operate, the SFC has imposed temporary restrictions on their business scope. These limitations will remain in place until the platforms address key issues identified by the regulator during the inspection phase.
The four companies are also required to conduct independent vulnerability assessments and penetration tests to ensure their systems are secure.
According to a Finance Magnates report on Wednesday, Eric Yip, the SFC’s Executive Director of Intermediaries, said the regulator has been actively engaging with the management of VATPs to ensure compliance with its standards.
“We have been proactively engaging with VATPs’ senior management and ultimate controllers, which helps drive home our expected regulatory standards and expedite our licensing process for VATPs,” he said.
Next Steps for New Licensees
He also highlighted the SFC’s goal of striking a balance between protecting investors and fostering the development of Hong Kong’s virtual asset market.
The SFC will oversee the second phase of its assessment for the newly licensed exchanges. During this phase, the platforms must address all outstanding issues and demonstrate compliance with Hong Kong’s strict regulatory standards. Once the regulator is satisfied with their performance, the restrictions on their operations will be lifted.
Meanwhile, Hong Kong’s push to regulate the crypto market reflects its ambition to become a global hub for digital assets. This crypto-friendly environment has inspired influential figures like Johnny Ng, a member of the Hong Kong Legislative Council, to advocate for the inclusion of Bitcoin BTC $104 155 24h volatility: 2.7% Market cap: $2.06 T Vol. 24h: $64.44 B in the nation’s financial reserves.
Ng believes integrating Bitcoin into Hong Kong’s central reserves could enhance the region’s economic framework if accompanied by the right regulatory measures.
His proposal was inspired by Donald Trump’s keynote speech at the Bitcoin Conference 2024 in Nashville, during his campaigns. At the event, Trump pledged to include Bitcoin in the US reserves if re-elected as the president.
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Hong Kong Approves Four More Crypto Exchanges Under Tightened Regulations
