• Hong Kong SFC now licenses seven virtual asset platforms after approving four new firms.

  • New VATP approvals in Hong Kong emphasize strict KYC, cybersecurity, and asset safeguards.

  • Hong Kong’s crypto ecosystem strengthens with SFC’s fast-tracked VATP licensing.

The Hong Kong SFC Has Approved Four New virtual asset trading platforms (VATPs) Providers. This increased the regulatory coverage of virtual assets in the region as much as possible. The approval brings the number of licensed operators in Hong Kong to seven. This development reflects the change across Hong Kong regarding establishing a controlled environment for digital asset trading.

Four Firms Added to Hong Kong’s Licensed VATP List

The newly licensed firms—Accumulus GBA Technology (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI)—received approvals on December 18. They now join HashKey, OSL, and HKVAX as licensed VATPs.

https://twitter.com/esatoshiclub/status/1869636327903461447

Licensing is done through inspections and assessments that the SFC conducts on various platforms to confirm compliance. These evaluations centre on important sectors, including the protection of client assets, KYC policies, and security measures.

Speaking about the advances made by SFC, the Executive Director of Intermediaries, Eric Yip, noted that the active influence with the management of platforms helped streamline the process of getting the license. It seeks to promote fairness for investors and enhance growth within the virtual assets market. Licensed platforms must complete a vulnerability assessment and penetration testing before full operational certification and should be closely monitored by the SFC.

Regulatory Enhancements for Investor Protection

The SFC adopted the VATP licensing regime in June 2023 to enable retail investors to participate in virtual asset trading through a safe and regulated environment. The framework includes compliance measures related to anti-money laundering policies, cybersecurity measures, and operational disclosure.

The recent approvals align with the SFC’s long-term strategy, which includes advancing digital asset regulation and exploring blockchain technology applications. In addition to licensing VATPs, the SFC plans to establish a consultative panel in early 2025 to encourage collaboration between regulators and industry stakeholders.

Despite the new licensing developments, the SFC warns investors against dealing with unregulated platforms. The firm has a warning popup on its website emphasizing that trading should be conducted on registered or deemed-compliant platforms.

Establishing a Global Crypto Hub

The increase in licensed VATPs boosts Hong Kong’s plan to be a leading crypto-friendly jurisdiction. The region aims to differentiate from locations, such as Singapore and the UAE, with favorable and clear legislation for investors.

Further measures include implementing the OECD’s Crypto-Asset Reporting Framework (CARF) for improved cooperation with other countries and the combating of cross-border tax fraud. The legislative changes should be completed by 2026, while the first data-sharing processes will commence in 2028.

The post Hong Kong SFC approves four new virtual asset trading platforms appeared first on Crypto News Land.