Hong Kong’s SFC to Accelerate Cryptocurrency Exchange Licensing, First Licenses Expected by Year-End
Date: 2024-10-28 Author: Henry Casey Categories: IN WORLD
During the Fintech Week 2024 event, Dr. Eric Yip, the SFC’s Director of Intermediaries, outlined the commission’s strategic plans to support the virtual asset trading platform sector in Hong Kong. The SFC’s main focus is to accelerate the licensing process for VATPs that are in the “deemed license” status. To achieve this, the commission conducts on-site inspections and maintains regular interactions with the management and supervisors of these platforms to ensure that they are compliant and transparent.
Currently, according to the SFC’s website, 14 cryptocurrency platforms, including Crypto.com and Matrixport, have the “deemed license” status, but only three platforms have received a full license from the Hong Kong regulator.
SFC Plans to Establish Advisory Panel for VATPs
In addition to accelerating the licensing process, the SFC intends to establish an advisory panel for VATPs in early 2025. This panel will include representatives from each licensed platform, allowing for a direct dialogue between the regulator and market participants. The input from this panel, as well as other stakeholders, will be used to prepare a white paper on priority areas for regulation of the virtual asset industry.
The SFC’s next steps include working with the Hong Kong government and other regulators to develop a regulatory framework for virtual asset trading and custody services. Supporting tokenisation initiatives also remains a priority for the SFC, which is participating in the Hong Kong Monetary Authority’s Project Ensemble, which aims to build a tokenisation infrastructure for the asset management sector and set standards for the settlement of tokenised assets.
“The SFC will continue to take a pragmatic and proactive approach to creating and improving a comprehensive regulatory framework,” said Dr Yip, highlighting the commission’s dual mandate to protect investors and promote market growth.
