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Hong Kong Approves Four New Crypto Exchanges, Strengthening Bid as Crypto Hub
In a significant development, the Hong Kong Securities and Futures Commission (SFC) has granted provisional licenses to four new virtual asset trading platforms (VATPs), bringing the total number of licensed exchanges in the city to seven. This recent approval is part of Hong Kong’s swift licensing process, designed to speed up approvals while ensuring that these platforms meet the SFC’s regulatory standards.
The newly approved exchanges include Accumulus GBA Technology Co Ltd, DFX Labs Co Ltd, Hong Kong Digital Assets EX Ltd, and Thousand Whales Technology Ltd. These firms have been authorized to conduct business within a restricted scope, but they must still fulfill additional regulatory requirements before fully operating without restrictions.
It is worth noting that the SFC’s swift licensing process was established in response to the growing demand for clearer and more efficient crypto regulations in the region. The organization aims to strike a balance between fostering innovation in the crypto space and maintaining investor protection.
Despite receiving initial approval, these exchanges will need to clear a second phase of regulatory scrutiny before being fully licensed. This stage involves assessing whether their internal policies, systems, and procedures align with regulatory requirements, as well as conducting anti-money laundering (AML) and counter-financing terrorism (CFT) assessments.
The SFC has also emphasized the importance of direct engagement between regulators and senior management of the exchanges during this second phase. Furthermore, a certified public accountant will be required to verify that the platform’s policies align with guidelines set for VATPs.
Hong Kong’s efforts to expand its crypto market and enhance regulatory clarity are yielding positive results. The city has already seen approvals for other platforms such as OSL, HKVAX, and HashKey earlier this year.
Source: www.crypto-news.net
