Hong Kong set to expand crypto licensing by year-end amid push to become digital asset hub

The Hong Kong Securities and Futures Commission (SFC) is reportedly acceptable to contented much licenses to crypto businesses by the year’s end, section quality outlet Hong Kong 01 reported connected Oct. 7.

This follows the caller approval of HKVAX arsenic the 3rd licensed crypto speech successful the city.

‘Deemed to beryllium licensed’

SFC CEO Julia Leung stated that the bureau plans to assistance licenses successful batches. This strategy volition let much crypto firms to gradually participate the market.

Leung mentioned that 11 Virtual Asset Trading Platforms (VATPs) are presently connected the regulator’s database of imaginable licensees. The SFC has completed the archetypal circular of inspections and advised these firms to marque indispensable adjustments.

She stressed that the SFC is moving to fortify the regulatory model for virtual assets. Leung besides warned that companies failing to conscionable the required standards volition beryllium disqualified from the licensing process.

Leung said:

“Applicants who bash not conscionable the requirements volition suffer their qualifications for licensing, portion applicants who conscionable the requirements volition beryllium granted a licence conditionally.”

Long-term regulatory plans

Leung besides outlined the SFC’s roadmap for 2024-2026 and said Hong Kong plans to beforehand regulations for virtual plus platforms, beforehand the tokenization of accepted assets, and research determination blockchains and Web3 technologies. She besides expects the regulatory model to beryllium finalized by adjacent year.

On over-the-counter (OTC) crypto services, Leung revealed that a caller licensing strategy has been introduced for OTC custody services. The inaugural is seeking feedback from manufacture participants to fine-tune the approach.

Analysts noted that these efforts are portion of Hong Kong’s broader propulsion to presumption itself arsenic a integer plus hub. While the region’s wide regulations are designed to pull businesses, the strict rules — aimed astatine capitalist extortion and preventing wealth laundering — person created challenges for immoderate planetary platforms, including Binance.

The station Hong Kong acceptable to grow crypto licensing by year-end amid propulsion to go integer plus hub appeared archetypal connected CryptoSlate.