The Hong Kong Securities and Futures Commission (SFC) is swiftly expanding the city’s crypto industry by issuing more licenses to crypto exchanges in batches by the end of the year, according to a local media report.
The SFC’s decision to issue more licenses to crypto exchanges comes as the regulatory body celebrates its 35th anniversary this year.
The SFC also noted its strategic priorities for 2024 to 2026, focusing on strengthening market resilience, boosting Hong Kong’s capital market’s global competitiveness and appeal, driving the financial market’s transformation through technology, and improving institutional resilience and operational efficiency.
HKVAX Secures Crypto Exchange License in Hong Kong
According to the report, Liang Fengyi, CEO of the China Securities Regulatory Commission, announced that the regulator had issued a license to Hong Kong Virtual Asset Exchange (HKVAX) to function as a crypto exchange in the region, following previous approvals for OSL and HashKey exchange.
Upon securing the license, HKVAX noted in a statement last Thursday that the company focuses on security token offerings, tokenizing real-world assets, and providing over-the-counter trading, exchange, and custody services.
11 Platforms Seeking Licences
According to Fengyi, 11 platforms are on the SFC’s list of virtual asset trading platform applicants seeking licenses. The regulator has concluded the initial round of onsite inspections and instructed these applicants to implement the required adjustments.
The SFC chief noted that the agency aims to maintain market fairness and promote the development of the regulatory system for virtual asset trading platforms.
Fengyi further stated that the China Securities Regulatory Commission has introduced a new licensing system for crypto over-the-counter (OTC) and custody services and is seeking feedback from the industry.
He also noted that to drive the transformation of the financial market, it is necessary to embrace financial innovation, advance the regulatory framework for virtual asset trading platforms, encourage the tokenization of traditional assets, and leverage regional blockchain and Web3 technologies to foster secure and responsible financial technology.
Consequently, Hong Kong seeks to attract top players in the crypto space by offering a favorable environment, complete with clear compliance measures and investor protections.
