Hong Kong plans to grant licenses to crypto exchanges

The Hong Kong financial regulator announced plans to issue more licenses to cryptocurrency exchanges and companies working with digital assets in the region by the end of the year.

Progress in licensing

SFC Chief Executive Julia Leung stated that significant progress is expected in issuing licenses to 11 virtual asset trading platforms (VATPs) listed as potential licensees by the regulator.

Leung noted that licenses will be granted in "batches" to ensure crypto exchanges comply with regulatory requirements.

Inspections and regulatory compliance

16 companies are awaiting decisions on their applications for licenses to operate with digital assets. Of these, 11 already function as "licensed" entities, but the SFC advises traders not to engage with them until they receive official approval.

Leung also mentioned that the first round of inspections has been completed. She emphasized that all VATPs that meet the regulator’s licensing model can expect approval for their applications.

Development of crypto regulation

Currently, retail investors in Hong Kong have access to only four cryptocurrencies, and the region has been criticized for the slow development of its regulatory framework, despite its ambitions to become a global hub for digital assets and financial technologies.

Despite the criticism, Leung expressed confidence that the regulatory framework would be completed by the end of next year.