According to Odaily, the Hong Kong Securities and Futures Commission (SFC) has identified unsatisfactory practices during on-site inspections of several virtual asset trading platforms. The inspections have raised concerns about whether these platforms will ultimately receive formal licenses.

Sources indicate that some cryptocurrency companies overly rely on a few senior executives to oversee the custody of client assets, while others lack adequate measures to prevent cybercrime risks. It remains unclear which companies have failed to meet the SFC's requirements. The on-site inspections are still ongoing, and an SFC spokesperson stated that they would not comment on specific cases. The purpose of these inspections is to determine whether applicants comply with the SFC's requirements, with a particular focus on the protection of client assets and the 'know your customer' processes.

For platforms unable to rectify significant deficiencies identified during the inspections, the SFC may choose to revoke their status as licensed applicants or reject their license applications altogether.