Hong Kong’s Securities and Futures Commission (SFC) has released a comprehensive list of two licensed cryptocurrency trading platforms and 17 pending applicants, as part of the new regulations that came into effect on June 1. The SFC emphasizes that operating without a license is a criminal offense and assures that appropriate actions will be taken against any violations.
Under the new regulations, all virtual asset trading platforms (VATPs) operating in or targeting Hong Kong investors must be licensed by the SFC or fall under the category of “deemed-to-be-licensed VATP applicants,” as explained by the regulator. These regulations aim to enhance investor protection and market integrity by requiring comprehensive applications that include management experience, industry qualifications, and external attestations. The rules also encompass specific token admission criteria, anti-money laundering (AML) requirements, and prohibitions on proprietary trading. Additionally, platforms must have sufficient insurance or compensation arrangements to mitigate custodial risks.
As of the June 1 deadline, the only licensed VATPs in Hong Kong are OSL Digital Securities Ltd. (OSL Exchange) and Hash Blockchain Ltd. (HashKey Exchange).
The SFC has published a list of crypto trading platform applicants to highlight that they are not yet licensed and may not meet regulatory standards. Investors are advised to verify licenses and exercise caution when dealing with unlicensed or provisionally licensed platforms, as they could face closure if not approved.
The list of crypto trading platform applicants includes Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd., Hong Kong Virtual Asset Exchange Ltd., Victory Fintech Company Ltd., Panthertrade (Hong Kong) Ltd., Accumulus GBA Technology (Hongkong) Co. Ltd., DFX Labs Company Ltd., Newbx Limited, Thousand Whales Technology (BVI) Ltd., Highblock Ltd., YAX (Hong Kong) Ltd., Bullish (GI) Ltd., Foris DAX HK Ltd., Whalefin Markets Ltd., Flying Hippo Technologies Ltd., hi5 (Hong Kong) Ltd., and Bitcoin World Technology Ltd.
Several crypto exchanges, including Okx and Gate.hk, have announced their decision to cease operations in Hong Kong due to the implementation of the new regulatory framework.
We would like to hear your thoughts on the 17 pending applicants in Hong Kong under the new regulations. Share your opinions in the comments section below.
