The Hong Kong regulator will conduct on-site inspections of crypto platforms that have applied for licensing. By June 1, 2024, all crypto platforms in Hong Kong must be licensed or “deemed to be licensed.”

The Securities and Futures Commission (SFC) will focus on regulatory compliance, in particular the preservation of client assets and know your client processes.

Currently, only two companies have SFC licenses - OSL Digital Securities Limited and Hash Blockchain Limited. Applications from 18 companies are still in the system, and 11 companies have either withdrawn their applications or been deleted.

The SFC does not expect applicants to actively advertise their services or attract new retail customers until they are fully licensed.