Hong Kong’s Crypto Exchanges Struggling to Get Licenses:
Hong Kong is facing a major crisis in its bid to become a digital asset hub amid uncertainty over whether 11 cryptocurrency exchanges will be granted full licenses after they received preliminary approval earlier this month.
The city’s Securities and Futures Commission found unacceptable practices at some of the “certified” platforms during on-site inspections after they received approval in June, according to people familiar with the situation who asked not to be identified because the information is not public.
The people said some crypto firms rely heavily on a handful of executives to oversee the custody of client assets, and others are not adequately guarding against cybersecurity risks.
It’s not clear which companies have failed to meet the SFC’s requirements, as inspections are ongoing and the results could change, according to the people familiar with the matter.
The violations discovered by the committee add to the challenges facing officials as they seek to establish a thriving digital token hub in the city.
