Hong Kong’s Securities and Futures Commission (SFC) is moving to expedite the approval of additional crypto exchange licenses by the end of 2024, according to Julia Leung, the SFC’s chief executive. This regulatory step follows the recent approval of the third license under Hong Kong’s new crypto trading regime, granted to HKVAX. Leung announced that several more crypto platforms are on a “deemed-to-be-licensed” list and that licenses will be issued in batches following the completion of onsite inspections.

Strengthening Hong Kong’s Financial Hub Status

The licensing initiative is part of Hong Kong’s broader strategy to establish itself as a leading financial center with a focus on digital assets. By offering clear regulatory pathways for crypto platforms, Hong Kong aims to balance growth in the digital asset sector while ensuring compliance with regulatory standards. HKVAX, for instance, provides a range of services, including security token offerings and real-world asset tokenization, which align with Hong Kong’s objectives of strengthening its position in asset management. Despite these advances, some lawmakers have expressed concerns over the rigorous standards required for licensing. Duncan Chiu, a Hong Kong legislator, noted that overly stringent rules have deterred major crypto exchanges, such as OKX and Gate.io, from entering the market. Still, major players like Bullish and Crypto.com remain in the licensing process, and the SFC’s commitment to expanding licenses is likely to encourage further industry growth. Hong Kong introduced its crypto licensing regime in June 2023, allowing licensed exchanges to serve retail investors, which has attracted interest from firms seeking regulated environments for digital assets. As the SFC rolls out additional licenses, Hong Kong is positioning itself as a global leader in regulated cryptocurrency trading. Source: The Block