Hong Kong’s SFC Set to Approve More Crypto Exchanges by Year-End

by

As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies and blockchain technology, I find myself intrigued by the recent developments in Hong Kong’s regulatory landscape. The announcement made by Julia Leung, the CEO of the Securities and Futures Commission (SFC), regarding the approval of additional cryptocurrency exchanges by the end of 2024, is a significant step forward for the city’s ambitions to become a global hub for crypto and Web3.

By the year-end of 2024, it’s expected that the Hong Kong Securities and Futures Commission (SFC) will give the green light to more cryptocurrency trading platforms, as per their CEO, Julia Leung.

According to a report by Callan Quinn for CoinDesk, Leung announced on October 6th that the 11 platforms being reviewed on-site are anticipated to advance their application process by the end of the year.

Following the SFC’s authorization of the domestic exchange HKVAX, this news arrives. Now, Hong Kong has three approved exchanges, with HashKey and OSL having previously been granted licenses that were upgraded from their previous regulatory frameworks. Additionally, Bullish (the parent company of CoinDesk) is among the companies seeking a license in the current application process.

The licensing system in Hong Kong has been under scrutiny due to its perceived rigidity, which could hamper its aspirations to serve as a center for cryptocurrency and Web3 development. In August, it was reported that the Securities and Futures Commission (SFC) identified questionable practices at certain exchanges, with a focus on concerns about safekeeping procedures for digital assets and measures to combat cybercrime.

Although efforts were made to lure key participants, such as an offer extended to Coinbase by a Legislative Council member, some international trading platforms like OKX and Bybit have decided not to proceed with their applications. The South China Morning Post suggests that the SFC’s instruction barring mainland Chinese residents from using these services could be a contributing factor behind this decision.

The Securities and Futures Commission (SFC) has encountered criticism due to the demise of JPEX, an unscrupulous trading platform that caused a loss of approximately $200 million for 2,600 Hong Kong investors. In response to investigations into JPEX, more than 70 individuals have been apprehended by authorities. Subsequently, the SFC has taken steps to enhance transparency regarding licensed and questionable exchanges. Additionally, they are soliciting opinions on regulating over-the-counter (OTC) trading and custodial services.

Read More

2024-10-08 11:26