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Hong Kong Moves Closer to Becoming Crypto Hub with New Exchange Approvals
In a significant step towards establishing itself as a global crypto hub, the Hong Kong Securities and Futures Commission (SFC) has approved four new virtual asset trading platforms (VATPs), bringing the total number of licensed exchanges in the city to seven. The latest approvals are part of the SFC’s swift licensing process aimed at streamlining the regulatory environment for cryptocurrency businesses.
The newly approved exchanges, Accumulus GBA Technology Co Ltd, DFX Labs Co Ltd, Hong Kong Digital Assets EX Ltd, and Thousand Whales Technology Ltd, have been granted provisional approval to operate within a restricted scope while they work towards meeting further regulatory requirements. The companies are now authorized to conduct business under the supervision of the SFC.
It is essential to note that these exchanges still need to clear the second phase of the regulatory process before fully operating without restrictions. This stage involves an assessment of their internal policies, systems, and procedures to ensure alignment with regulatory requirements. Additionally, they must undergo evaluations to guarantee compliance with anti-money laundering (AML) and counter-financing terrorism (CFT) rules.
The SFC’s swift licensing approach is aimed at fostering innovation in the crypto space while maintaining investor protection. This streamlined process enables regulators to engage directly with senior management of the exchanges, ensuring that businesses operate within a clear regulatory framework.
Hong Kong has been actively working towards strengthening its position as a global crypto hub. Since introducing this accelerated licensing process, the city has already seen approvals for other platforms like OSL, HKVAX, and HashKey earlier in the year. However, not all major exchanges have found the SFC’s requirements suitable, with OKX reportedly withdrawing from the market.
Nonetheless, the recent approvals are a significant step forward in establishing Hong Kong as a leading jurisdiction for cryptocurrency businesses.
Source: www.crypto-news.net
