Hong Kong's Crypto Licensing Update
Hong Kong’s financial regulator has issued its third license under the new crypto trading platform licensing regime, with plans to approve more platforms by the end of the year, according to local media.
In an interview with HK01, Julia Leung, the chief executive of the Hong Kong Securities and Futures Commission (SFC), announced that HKVAX has been approved to operate as a crypto exchange in Hong Kong, following previous licenses granted to OSL and HashKey.
Leung noted that there are 11 platforms on the SFC’s list of deemed-to-be-licensed virtual asset trading platform applicants. The regulator has completed the first stage of onsite inspections and has requested necessary adjustments from these applicants.
The SFC aims to see progress by the end of the year, including issuing licenses in batches. The Block has sought further comments from the SFC.
Upon receiving its license, HKVAX stated that the firm specializes in security token offerings and real-world asset tokenization, in addition to providing over-the-counter trading, exchange, and custody services.
Anthony Ng, co-founder and CEO of HKVAX, emphasized that the license aligns with Hong Kong's goals to reinforce its role as a financial hub and international asset management center. He stated, "Obtaining the licence affirms HKVAX and demonstrates Hong Kong's resolve to lead in the virtual asset industry."
Hong Kong is actively welcoming crypto firms; in June 2023, it officially launched a crypto licensing regime for trading platforms, allowing licensed exchanges to offer retail trading services.
However, concerns have been raised by lawmaker Duncan Chiu regarding the regulations being "excessively stringent." He criticized that these rules have deterred major global exchanges from entering Hong Kong. Notably, exchanges like OKX, Gate.io, and HTX have withdrawn their license applications, while Bullish and Crypto.com remain listed as applicants for licenses, according to the SFC's website.
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