Hong Kong Approves Third Crypto Exchange Under New Rules
The SFC aims to increase the number of licensed platforms by the end of the year
October 7, 2024 12:09 PM
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TL;DR Hong Kong's financial regulator has approved HKVAX as the third licensed crypto exchange under its new regime. This move follows approvals for OSL and HashKey.
Hong Kong's Regulatory Landscape
Last week, the Hong Kong Securities and Futures Commission (SFC) issued its third license under the new crypto trading regime. HKVAX emerged as the latest recipient, joining the ranks of OSL and HashKey, previously approved platforms. This move is part of Hong Kong's ambitious plan to establish itself as a leading hub for virtual asset management.
SFC's Strategic Vision
In a revealing interview with HK01, SFC's chief executive, Julia Leung, outlined the regulator's strategic direction. The SFC has an active list of 11 platforms deemed to be potential licensees.
The initial stage of inspections has been completed, and applicants are now required to make adjustments to align with regulatory standards. Leung expressed the SFC's commitment to issuing licenses in batches by the end of the year.
HKVAX's Market Positioning
Upon securing the license, HKVAX released a statement highlighting its focus on security token offerings and real-world asset tokenization.
In addition to its core services, HKVAX provides over-the-counter trading, exchange, and custody options. Co-founder and CEO Anthony Ng emphasized aligning their operations with Hong Kong's broader goals to reinforce its status as an international financial center.
Challenges Remain
Despite the positive developments, there are voices of concern. Duncan Chiu, a Hong Kong lawmaker, criticized the "excessively stringent" regulations imposed on crypto exchanges.
He argued that these rules have deterred major global exchanges from entering the Hong Kong market. Several platforms, such as OKX, Gate.io, and HTX, have withdrawn their applications. However, Bullish and Crypto.com remain hopeful applicants.
A New Era for Crypto in Hong Kong
June 2023 marked the formal initiation of Hong Kong's crypto licensing regime, which permits licensed exchanges to offer retail trading services.
This initiative reflects the city's desire to attract and nurture crypto enterprises.
As the year progresses, the SFC's commitment to expanding the licensed platform list is poised to transform Hong Kong into a pivotal player in the crypto industry.
"This aligns with Hong Kong's goals to strengthen its position as a financial hub and international asset management center."