The Hong Kong Securities and Futures Fee (SFC) doubled the variety of licensed digital asset buying and selling platforms (VATPs). The truth is, it granted approvals to 4 new companies.
New licenses are granted to Accumulus GBA Know-how (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Know-how (BVI). They obtained their licenses on 18 December 2024, becoming a member of current platforms HashKey, OSL, and HKVAX.
The approvals come below the SFC’s expedited licensing course of for “deemed-to-be-licensed” VATP candidates.
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Exchanges Underwent On-Web site Inspections
As a part of the method, the exchanges underwent on-site inspections. Key regulatory necessities had been addressed, comparable to safeguarding consumer property, Know Your Buyer (KYC) procedures, and cybersecurity measures.
“We have been proactively engaging with VATPs’ senior management and ultimate controllers which helps drive home our expected regulatory standards and expedite our licensing process for VATPs,” mentioned Eric Yip, SFC’s govt director of intermediaries.
The newly licensed exchanges will initially function below a restricted scope. They are required to conduct vulnerability assessments and penetration checks with third-party verification earlier than the restrictions could be lifted.
Moreover, the SFC will oversee this course of intently. The regulator launched a round outlining its expectations for VATPs.
At present, all licensed platforms are approved to commerce securities, provide automated buying and selling companies, and function as VATPs. At present, 11 extra VATPs are on the applicant’s record, seven of which have “deemed-to-be-licensed” standing.
JUST IN: Hong Kong SFC approves and lists 4 new #Bitcoin and crypto buying and selling platforms.
China is getting ready
pic.twitter.com/in0RdmRGfZ
— Bitcoin Journal (@BitcoinMagazine) December 18, 2024
The SFC’s web site warns customers to commerce solely on licensed platforms. Nevertheless, it’s potential to work together with exchanges that maintain “deemed-to-be-licensed” standing. The transfer aligns with the SFC’s broader technique to manage and strengthen the crypto buying and selling framework within the area.
SFC CEO Julia Leung mentioned that new licenses could be granted in batches as a part of a regulatory roadmap by 2026. The plan goals to reinforce oversight, help real-world asset tokenization, and discover blockchain know-how’s potential in monetary markets.
Hong Kong’s present retail cryptocurrency market stays restricted to 4 out there tokens: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).
Retail cryptocurrency buying and selling was formally legalized in August 2023.
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Hong Kong Accelerates Crypto Regulation
Not too long ago, the Hong Kong authorities introduced plans to implement a compulsory crypto asset reporting framework by 2026.
The proposed crypto asset reporting framework would require tax-paying residents in the nation to yearly report their crypto accounts and transactions.
Moreover, Hong Kong additionally mentioned it’s rolling out a plan to exempt non-public fairness funds, hedge funds, and the funding autos of ultra-wealthy people from taxes on positive aspects from cryptocurrencies, non-public credit score investments, and different property.
The proposal claims that taxation is “one of the key considerations” for asset managers when selecting the place to base their operations. By making a “conducive environment,” the Honk Kong authorities goals to draw international traders and crypto companies.
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The publish Hong Kong Expands Crypto Footprint With Licenses For Four More Exchanges appeared first on 99Bitcoins.
