The Hong Kong Securities and Futures Fee (SFC) doubled the variety of licensed digital asset buying and selling platforms (VATPs). Actually, it granted approvals to 4 new companies.
New licenses are granted to Accumulus GBA Expertise (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Expertise (BVI). They obtained their licenses on 18 December 2024, becoming a member of present platforms HashKey, OSL, and HKVAX.
The approvals come beneath the SFC’s expedited licensing course of for “deemed-to-be-licensed” VATP candidates.
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Exchanges Underwent On-Web site Inspections
As a part of the method, the exchanges underwent on-site inspections. Key regulatory necessities have been addressed, resembling safeguarding shopper belongings, Know Your Buyer (KYC) procedures, and cybersecurity measures.
“We have been proactively participating with VATPs’ senior administration and supreme controllers which helps drive residence our anticipated regulatory requirements and expedite our licensing course of for VATPs,” mentioned Eric Yip, SFC’s government director of intermediaries.
The newly licensed exchanges will initially function beneath a restricted scope. They are required to conduct vulnerability assessments and penetration checks with third-party verification earlier than the restrictions might be lifted.
Furthermore, the SFC will oversee this course of intently. The regulator launched a round outlining its expectations for VATPs.
Presently, all licensed platforms are approved to commerce securities, supply automated buying and selling providers, and function as VATPs. Presently, 11 extra VATPs are on the applicant’s record, seven of which have “deemed-to-be-licensed” standing.
JUST IN: Hong Kong SFC approves and lists 4 new #Bitcoin and crypto buying and selling platforms.
China is getting ready
pic.twitter.com/in0RdmRGfZ
— Bitcoin Journal (@BitcoinMagazine) December 18, 2024
The SFC’s web site warns customers to commerce solely on licensed platforms. Nevertheless, it’s doable to work together with exchanges that maintain “deemed-to-be-licensed” standing. The transfer aligns with the SFC’s broader technique to control and strengthen the crypto buying and selling framework within the area.
SFC CEO Julia Leung mentioned that new licenses can be granted in batches as a part of a regulatory roadmap by way of 2026. The plan goals to boost oversight, assist real-world asset tokenization, and discover blockchain expertise’s potential in monetary markets.
Hong Kong’s present retail cryptocurrency market stays restricted to 4 out there tokens: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).
Retail cryptocurrency buying and selling was formally legalized in August 2023.
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Hong Kong Accelerates Crypto Regulation
Lately, the Hong Kong authorities introduced plans to implement a compulsory crypto asset reporting framework by 2026.
The proposed crypto asset reporting framework would require tax-paying residents in the nation to yearly report their crypto accounts and transactions.
Moreover, Hong Kong additionally mentioned it’s rolling out a plan to exempt non-public fairness funds, hedge funds, and the funding autos of ultra-wealthy people from taxes on positive factors from cryptocurrencies, non-public credit score investments, and different belongings.
The proposal claims that taxation is “one of many key issues” for asset managers when selecting the place to base their operations. By making a “conducive atmosphere,” the Honk Kong authorities goals to draw international traders and crypto companies.
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