Hong Kong Tightens Crypto Platform Oversight with Stringent Compliance Measures
Hong Kong’s push to be seen as a crypto hub could come under scrutiny if a few or some of the license’s 18 applicants fail to survive this crucial deadline.
- The Hong Kong regulator will conduct on-site inspections of crypto platforms offering licensed commercial services.
- By June 1, 2024, all crypto platforms in Hong Kong must be licensed or “deemed licensed.”
The Hong Kong Securities and Futures Commission (SFC) will conduct on-site inspections of crypto trading platforms, the regulator announced on Tuesday. The regulator is keen to continue tracking license applications, especially as deadlines approach.
By June 1, 2024, all crypto platforms offering trading services in Hong Kong called Virtual Asset Trading Platforms (VATPs) will be licensed or “deemed licensed” by the SFC, which is a provisional order in the process To ensure compliance.
“In the coming months, as VATP applicants deemed licensed pursue their applications, SFC will conduct on-site inspections to ensure compliance with SFC regulatory requirements, particularly creating client assets and knowing.” -Protect your-client strategies,” the announcement said.
OSL Digital Securities Limited and Hash Blockchain Limited are the only two companies currently listed as authorized by the SFC. Applications from 18 institutions remain in the process, while 11 organizations have withdrawn or withdrawn their applications. Recently, crypto exchanges OKX and Huobi Hong Kong withdrew their applications.
Notably, by June 1, it will be clear how many of the 18 companies are still in the SFC program as “deemed licensed.” If few or none of the 18 applicants missed this pivotal moment, the pressure to become Hong Kong’s premier crypto hub could be examined.
The SFC said applicants could refrain from actively marketing their services or engaging new retail customers before obtaining a full license.
“It’s not surprising that the SFC plans to introduce higher-level checks than usual in the application process, such as on-site checks,” said Angela Ang, senior policy consultant at TRM Labs, a blockchain reporting firm. “The recent application withdrawal could also be an attempt by the SFC to clean the house before the deeming scheme comes into effect.”
Conclusion:
Hong Kong’s implementation of strict compliance measures for cryptocurrency platforms marks an essential step towards enhancing investor protection and ensuring market integrity in the digital asset space.
