According to PANews, Hong Kong is encountering obstacles in its bid to become a digital asset hub, as it remains uncertain whether 11 cryptocurrency exchanges will secure formal licenses after receiving preliminary approval. Insiders reveal that since these platforms obtained 'deemed licensed' status from the Hong Kong Securities and Futures Commission (SFC) in June, on-site inspections have uncovered unsatisfactory practices among some exchanges. Some companies overly rely on a few executives to oversee customer asset custody, while others lack adequate measures to mitigate cybercrime risks. It is currently unclear which companies have failed to meet the SFC's standards. Inspections are ongoing and outcomes may change, adding to the challenges officials face in fostering a thriving cryptocurrency center in Hong Kong.
An SFC spokesperson stated that while the agency does not comment on specific cases, inspections are conducted to ensure applicants comply with requirements, with a particular focus on customer asset protection and know-your-customer processes. The spokesperson added that platforms unable to rectify significant deficiencies found during on-site inspections may face the revocation of their 'deemed licensed' status or rejection of their license applications.