Hong Kong Grants Licenses to More Crypto Exchanges

Hong Kong has granted licenses to four more crypto exchanges as the region focuses on accelerating the licensing process amid growing competition to become a crypto hub.

The Securities and Futures Commission (SFC) announced on Wednesday that it approved licenses for additional exchanges — HKbitEX, Accumulus, DFX Labs, and EX.IO. These approvals came under its “swift licensing process” after applicants addressed feedback from the regulator’s on-site inspections. Previously, three licenses were issued to OSL, HashKey, and HKVAX.

In June 2023, Hong Kong officially launched a crypto licensing regime for “virtual asset trading platforms” (VATPs), enabling licensed exchanges to offer retail trading services.

The SFC noted efforts to expedite the licensing process. Eric Yip, the SFC’s Executive Director of Intermediaries, stated that they have been actively engaging with VATPs’ senior management to ensure compliance with regulatory standards while speeding up the licensing process.

In a separate circular published on Wednesday, the SFC elaborated on the revamped licensing process. Besides on-site inspections, applicants must have their platform policies, procedures, systems, and controls assessed by a certified public accountant.

The SFC will oversee the entire second-phase assessment through a tripartite engagement with VATPs and their external assessors and will remove restrictions on business scope after successful completion of the assessment to its satisfaction.

Joseph Chan, Acting Secretary for Financial Services and the Treasury, mentioned that the SFC also plans to form a consultative panel expected to start early next year for licensed crypto trading platforms.