Hong Kong’s Securities and Futures Commission (SFC) has approved licenses for four new crypto exchanges: HKbitEX, Accumulus, DFX Labs, and EX.IO.
These approvals bring the total number of exchanges licensed under Hong Kong’s regulatory framework to seven, joining previously authorized platforms OSL, HashKey and HKVAX.
Robust and transparent licensing framework
The SFC launched the licensing regime for virtual asset trading platforms (VATPs) in June 2023 to primarily provide a safe and regulated environment for retail crypto investors.
Hong Kong’s VATP licensing framework requires applicants to meet stringent compliance standards, including, for example, risk management protocols, operational transparency and user protection measures. The SFC has accelerated the licensing process by engaging directly with senior management and ultimate controllers of the applicant platforms.
Our proactive engagement ensures that platforms fully understand and meet our regulatory standards, enabling a faster and more efficient approval process, said SFC Executive Director of Intermediaries Eric Yip.
The updated process, outlined on the SFC’s official website, requires two main assessment phases. First, exchanges undergo a comprehensive assessment of their systems and internal controls, verified by certified public accountants. The SFC then oversees a second assessment, where restrictions on activities are lifted once the platforms have demonstrated full compliance with the regulations.
As of December, the SFC’s list of virtual asset trading platforms includes a mix of licensed operators, platforms deemed compliant, and those in the process of closing down. This transparency certainly ensures that investors can check the regulatory status of any platform operating in Hong Kong. And most importantly, it ensures greater security.
Looking ahead, the SFC plans to launch an advisory panel for licensed VATPs in early 2025. The Financial Services Secretary said the panel will serve as a platform for dialogue between regulators and industry participants. The initiative aims to foster collaboration, address market challenges and ensure that the regulatory framework evolves with technological innovation.
Hong Kong’s position in the global crypto ecosystem
This move complements the SFC’s broader efforts to establish Hong Kong as a leader in digital asset trading in general. By balancing strict supervision with industry-friendly measures, the region aims to attract top-tier crypto exchanges and institutional investors.
Hong Kong’s licensing regime has made it a standout jurisdiction in the competitive race to become a leading crypto hub. The region is trying to differentiate itself from other markets such as Singapore and the United Arab Emirates.
The SFC’s focus on transparency is further demonstrated through its regularly updated lists. Detailing the database of licensed, deemed compliant and unregulated platforms, which are available on its official website.
With its latest approvals, Hong Kong reinforces its commitment to fostering a safe and trusted ecosystem for digital assets going forward. As global competition intensifies, these moves underscore the region’s ambition to remain at the forefront of crypto trading and regulation.
Ultimately, the success of these initiatives will determine whether Hong Kong can solidify its position as a global leader in the crypto space.
The article Hong Kong accelerates crypto licensing with approval of four new exchanges was first seen on BeInCrypto Brasil.