Hong Kong approves 4 new crypto trading platform licenses in regulatory push
Hong Kongs Securities and Futures Commission (SFC) has issued licenses to four virtual asset trading platforms (VATPs), marking another step in its fast-tracked regulatory framework, according to a Dec. 18 statement.
The 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 the Asian city allowed to serve retail customers to seven, including HashKey Group, OSL, and the Hong Kong Virtual Asset Exchange (HKVAX).
Licensing regimes
The SFC stated that the recently licensed firms underwent rigorous on-site inspections earlier this year as part of the guidelines introduced in June. The inspections identified areas for improvement, which the firms addressed to secure their restricted licenses.
The licenses come with initial restrictions, but these will be lifted after the platforms pass a second-phase assessment by external evaluators. The process will ensure the platforms meet the required regulatory standards for full operational functionality.
The SFC emphasized that the VATPs must conduct vulnerability assessments and penetration tests through independent third parties. These evaluations are critical to maintaining security and align with global international standards.
The SFCs Executive Director of Intermediaries, Eric Yip, stated that the licensing process involved close collaboration with the VATPs leadership teams. He highlighted the Commissions dual focus on protecting investors while fostering growth in Hong Kongs virtual asset ecosystem.
Yip said:
We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.
Meanwhile, this development aligns with the SFCs broader plan to expand the licensing of crypto businesses by year-end. In October, the regulator revealed that 11 additional VATPs are under license consideration, with approvals expected to roll out in batches.
The SFCs proactive approach highlights Hong Kongs commitment to becoming a global hub for virtual asset innovation while maintaining robust investor safeguards.
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Text source: CryptoSlate
