Hong Kong Regulator Sets Deadline for Cryptocurrency Companies to Obtain Licenses
Date: 2024-02-07 Author: Dima Zakharov Categories: IN WORLD
Deadline for Licenses
The Securities and Futures Commission of Hong Kong (SFC) has issued a deadline for local cryptocurrency platforms to acquire licenses. Companies must submit their applications by February 29 or risk closure by May 31, 2024.
Enhanced Oversight
The SFC is intensifying its supervision of the cryptocurrency industry, advising investors to only engage with platforms listed by the regulator as licensed or those in the process of obtaining licenses. Investors trading on unregistered exchanges are urged to take precautions, such as closing their accounts by the specified deadline.
Regulatory Compliance
Currently, only two platforms, HashKey and OSL, have obtained SFC licenses. The regulator is reviewing applications from 14 other cryptocurrency companies, including Bybit, OKX, and HKVAEX, which reportedly has connections to the prominent exchange Binance.
Risk Mitigation Measures
Last week, the SFC urged local cryptocurrency exchanges to insure at least 50% of client assets to safeguard users and minimize the impact of potential security breaches or insolvencies.
