Regulation
SFC Issues New Crypto Regulations: 2 Platforms Licensed, 17 Pending Approval
Hong Kong’s Securities and Futures Commission (SFC) has introduced new regulations for virtual asset trading platforms (VATPs), which came into effect on June 1. According to these regulations, VATPs operating in or
marketing for Hong Kong investors must be licensed by the SFC or qualify as a “deemed-to-be-licensed VATP applicant”. The purpose of these regulations is to improve investor protection and market integrity.
The new rules require comprehensive applications that include management experience, industry qualifications and external certifications. They also establish specific criteria for the admission of tokens, anti-money laundering requirements and prohibitions on proprietary trading. Platforms must also have adequate insurance or compensation arrangements to cover custody risks.
As of the June 1 deadline, only two VATPs were licensed by the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC published a list of 17 pending applicants for VATP licenses.
The regulator points out that these applicants are not yet licensed and may not meet regulatory standards. Investors are advised to check licenses and be wary of unlicensed or provisionally licensed platforms, which may be shut down if not approved.
Pending crypto license requests
Pending applicants for IVAP licenses include Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd. and Hong Kong Virtual Asset Exchange Ltd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd. and Accumulus GBA Technology Co .Ltd.
Other applicants include DFX Labs Company Ltd., Newbx Limited and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd. and Bullish Ltd. are also seeking licenses.
Additionally, Foris DAX HK Ltd., Whalefin Markets Ltd. and Flying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd. and Bitcoin World Technology Ltd. complete the group of waiting candidates.
THE SFC
stresses that operating a VAT business without a license is a criminal offence. It undertakes to take appropriate action against any violations of the law. In response to the new regulatory framework, several cryptocurrency exchanges, including OKX and Gate.hk, have announced that they will cease operations in Hong Kong.
Hong Kong’s Securities and Futures Commission (SFC) has introduced new regulations for virtual asset trading platforms (VATPs), which came into effect on June 1. According to these regulations, VATPs operating in or
marketing for Hong Kong investors must be licensed by the SFC or qualify as a “deemed-to-be-licensed VATP applicant”. The purpose of these regulations is to improve investor protection and market integrity.
The new rules require comprehensive applications that include management experience, industry qualifications and external certifications. They also establish specific criteria for the admission of tokens, anti-money laundering requirements and prohibitions on proprietary trading. Platforms must also have adequate insurance or compensation arrangements to cover custody risks.
As of the June 1 deadline, only two VATPs were licensed by the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC published a list of 17 pending applicants for VATP licenses.
The regulator points out that these applicants are not yet licensed and may not meet regulatory standards. Investors are advised to check licenses and be wary of unlicensed or provisionally licensed platforms, which may be shut down if not approved.
Pending crypto license requests
Pending applicants for IVAP licenses include Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd. and Hong Kong Virtual Asset Exchange Ltd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd. and Accumulus GBA Technology Co .Ltd.
Other applicants include DFX Labs Company Ltd., Newbx Limited and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd. and Bullish Ltd. are also seeking licenses.
Additionally, Foris DAX HK Ltd., Whalefin Markets Ltd. and Flying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd. and Bitcoin World Technology Ltd. round out the group of outstanding candidates.
THE SFC
stresses that operating a VAT without a license is a criminal offence. It undertakes to take appropriate action against any violations of the law. In response to the new regulatory framework, several cryptocurrency exchanges, including OKX and Gate.hk, have announced that they will cease operations in Hong Kong.