Hong Kong’s Securities and Futures Commission Issues Licenses to Four Virtual Asset Trading Platforms
In a recent statement on December 18, Hong Kong’s Securities and Futures Commission (SFC) announced that it has granted licenses to four virtual asset trading platforms (VATPs), further solidifying its regulatory framework in the crypto industry.
The newly licensed platforms include Accumulus GBA Technology Ltd, DFX Labs Company Ltd, Hong Kong Digital Asset EX Limited, and Thousand Whales Technology (BVI) Ltd. This brings the total number of licensed crypto trading platforms in Hong Kong serving retail customers to seven, alongside HashKey Group, OSL, and the Hong Kong Virtual Asset Exchange (HKVAX).
Regulatory Compliance and Assessment
Under the guidelines introduced in June, the SFC conducted rigorous on-site inspections for the newly licensed firms earlier this year. These inspections identified areas for improvement, which the platforms addressed to secure their restricted licenses. The platforms will undergo a second-phase assessment by external evaluators to lift initial restrictions and ensure full operational functionality in compliance with regulatory standards.
The SFC emphasized the importance of vulnerability assessments and penetration tests conducted by independent third parties to maintain security and adhere to global standards. Eric Yip, the SFC’s Executive Director of Intermediaries, highlighted the Commission’s commitment to balancing investor protection with fostering growth in Hong Kong’s virtual asset ecosystem.
Yip stated, “We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.”
Expansion of Licensing Regimes
This development aligns with the SFC’s plan to expand the licensing of crypto businesses by the end of the year. In October, the regulator disclosed that 11 additional VATPs are under consideration for licenses, with approvals expected to be granted in batches.
The proactive approach taken by the SFC underscores Hong Kong’s dedication to positioning itself as a global hub for virtual asset innovation while upholding strong investor protections.