A regulator in Hong Kong has expressed dissatisfaction with the ongoing inspections of cryptocurrency exchanges awaiting full licensing in the region. While some applicants have received initial approvals, they are yet to be fully licensed, pending complete compliance with the Hong Kong Securities and Futures Commission’s (SFC) requirements. During on-site scrutiny, the SFC discovered that some crypto exchanges considered 'deemed to be licensed' were not effectively managing cybercrime risks and relied excessively on a few executives for client asset custody. The SFC has warned that operating an unlicensed virtual asset trading platform in Hong Kong is now a criminal offense. The regulator may remove the deemed-to-be-licensed status or reject license applications for platforms unable to address critical deficiencies identified during inspections. Hong Kong aims to enhance its crypto regulations over the next 18 months to establish itself as a global fintech hub, attracting investors and exchanges to comply with the new licensing regime. Read more AI-generated news on: https://app.chaingpt.org/news