The Hong Kong Securities and Futures Commission (SFC) is reportedly planning to issue more licenses to crypto companies by the end of the year, local news outlet Hong Kong 01 reported on October 7.
This follows the recent approval of HKVAX as the third licensed crypto exchange in the city.
‘Deemed to be licensed’
SFC CEO Julia Leung stated that the agency plans to grant licenses in batches. This strategy will allow more crypto companies to gradually enter the market.
Leung said 11 virtual asset trading platforms (VATPs) are currently on the regulator’s list of potential licensees. The SFC has completed the first round of inspections and advised these companies to make the necessary adjustments.
She emphasized that the SFC is working to strengthen the regulatory framework for virtual assets. Leung also warned that companies that do not meet the required standards will be excluded from the licensing process.
Leung said:
“Applicants who do not meet the requirements will lose their qualifications for a permit, while applicants who do meet the requirements will be granted a conditional permit.”
Long-term regulatory plans
Leung also outlined the SFC’s roadmap for 2024-2026, saying Hong Kong plans to advance regulation of virtual asset platforms, promote the tokenization of traditional assets and explore regional blockchains and Web3 technologies. She also expects the regulatory framework to be finalized next year.
Regarding over-the-counter (OTC) crypto services, Leung revealed that a new licensing system has been introduced for OTC custody services. The initiative is seeking feedback from industry participants to refine the approach.
Analysts noted that these efforts are part of Hong Kong’s broader attempt to position itself as a digital asset hub. While the region’s clear regulations are intended to attract businesses, the strict rules – aimed at protecting investors and preventing money laundering – have created challenges for some global platforms, including Binance.