Hong Kong Grants Licenses to Four 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 the approval of licenses for four additional exchanges: HKbitEX, Accumulus, DFX Labs, and EX.IO on Wednesday under its “swift licensing process.” This follows feedback addressed from the regulator’s inspections. Earlier, the SFC had issued licenses 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 has been working diligently to expedite this licensing process. Eric Yip, the SFC’s Executive Director of Intermediaries, stated, “We have been proactively engaging with VATPs’ senior management and ultimate controllers,” emphasizing that this approach helps clarify regulatory standards and accelerates the licensing for VATPs.

Moreover, the SFC released a circular on Wednesday detailing a revamped licensing procedure. Alongside on-site inspections, the regulation mandates that applicants submit assessments of their platform policies, procedures, systems, and controls, all of which must be certifiably signed by a public accountant.

The SFC aims to supervise the entire second-phase assessment process through a tripartite engagement with VATPs and their external assessors and will lift restrictions on business scope once the assessment meets satisfaction criteria.

Acting Secretary for Financial Services and the Treasury, Joseph Chan, mentioned that the SFC plans to establish a “consultative panel,” expected to commence early next year, to support licensed crypto trading platforms.