Hong Kong Expands Crypto Footprint With Licenses For Four More Exchanges

The Hong Kong Securities and Futures Fee (SFC) doubled the variety of licensed digital asset buying and selling platforms (VATPs). In actual fact, it granted approvals to 4 new corporations.

New licenses are granted to Accumulus GBA Expertise (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Expertise (BVI). They obtained their licenses on 18 December 2024, becoming a member of current platforms HashKey, OSL, and HKVAX.

The approvals come under the SFC’s expedited licensing course of for “deemed-to-be-licensed” VATP candidates.

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Exchanges Underwent On-Website Inspections

As a part of the method, the exchanges underwent on-site inspections. Key regulatory necessities have been addressed, comparable to safeguarding consumer belongings, Know Your Buyer (KYC) procedures, and cybersecurity measures.

“We have been proactively partaking with VATPs’ senior administration and supreme controllers which helps drive house our anticipated regulatory requirements and expedite our licensing course of for VATPs,” mentioned Eric Yip, SFC’s government director of intermediaries.

The newly licensed exchanges will initially function beneath a restricted scope. They are required to conduct vulnerability assessments and penetration checks with third-party verification earlier than the restrictions might be lifted.

Furthermore, the SFC will oversee this course of intently. The regulator launched a round outlining its expectations for VATPs.

Presently, all licensed platforms are approved to commerce securities, provide automated buying and selling companies, and function as VATPs. Presently, 11 further VATPs are on the applicant’s record, seven of which have “deemed-to-be-licensed” standing.

JUST IN: 🇭🇰 Hong Kong SFC approves and lists 4 new #Bitcoin and crypto buying and selling platforms.

China is getting ready 🙌 pic.twitter.com/in0RdmRGfZ

— Bitcoin Journal (@BitcoinMagazine) December 18, 2024

The SFC’s web site warns customers to commerce solely on licensed platforms. Nonetheless, it’s attainable to work together with exchanges that maintain “deemed-to-be-licensed” standing. The transfer aligns with the SFC’s broader technique to manage and strengthen the crypto buying and selling framework within the area.

SFC CEO Julia Leung mentioned that new licenses can be granted in batches as a part of a regulatory roadmap by means of 2026. The plan goals to reinforce oversight, assist real-world asset tokenization, and discover blockchain know-how’s potential in monetary markets.

Hong Kong’s present retail cryptocurrency market stays restricted to 4 out there tokens: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).

Retail cryptocurrency buying and selling was formally legalized in August 2023.

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Hong Kong Accelerates Crypto Regulation

Lately, the Hong Kong authorities announced plans to implement a compulsory crypto asset reporting framework by 2026. 

The proposed crypto asset reporting framework would require tax-paying residents in the nation to yearly report their crypto accounts and transactions. 

Moreover, Hong Kong additionally said it is rolling out a plan to exempt personal fairness funds, hedge funds, and the funding automobiles of ultra-wealthy people from taxes on good points from cryptocurrencies, personal credit score investments, and different belongings.

The proposal claims that taxation is “one of many key issues” for asset managers when selecting the place to base their operations. By making a “conducive surroundings,” the Honk Kong authorities goals to draw world buyers and crypto companies.

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