Hong Kong’s Securities and Futures Commission (SFC) has ordered unregistered Virtual Asset Trading Platforms (VATPs) in the region to submit their license applications by February 29 or close their businesses by May 31, according to a February 5 notice.
The financial regulator reaffirmed this deadline for cryptocurrency trading firms and advised investors to engage with licensed platforms in the region. As outlined by the SFC, crypto traders can verify the regulatory status of these platforms before March 1 through the “List of Licensed Virtual Asset Trading Platforms” or on the “List of Applicants for Virtual Asset Trading Platforms.”
“Investors should check the legal status of a VATP from time to time and in any case by March 1, 2024. This is because VATPs operating in Hong Kong that have not submitted their license applications to the SFC by February 29, 2024 MUST close their operations. in Hong Kong by May 31, 2024 in accordance with the transitional arrangements under the SFC’s regulatory regime for VATPs,” SFC added.
Last year, Hong Kong initiated its cryptocurrency licensing framework for virtual asset trading platforms, paving the way for licensed exchanges to offer retail trading services. Notably, the city-state has licensed two platforms, including HashKey and OSL.
Meanwhile, the regulator has carefully scrutinized the applications of 14 crypto entities, including OKX, Bybit and HKVAEX. The SFC emphasized that the application process does not guarantee approval, and warns investors to exercise caution when using these platforms.
These initiatives reflect Hong Kong’s commitment to promoting a pro-crypto environment. Recently, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) unveiled a comprehensive regulatory framework for stablecoins. Additionally, authorities have expressed their willingness to introduce spot Bitcoin exchange-traded fund (ETF) products, further strengthening Hong Kong’s position in the evolving crypto landscape.
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