Hong Kong is speeding up the licensing process for cryptocurrency exchanges with new approvals

Hong Kong Securities and Futures Commission (SFC). Granted Licenses for four additional cryptocurrency exchanges, marking an important step in the region’s quest to establish itself as a leading cryptocurrency hub.

The newly licensed exchanges – HKbitEX, Accumulus, DFX Labs and EX.IO – have received approval under the SFC’s accelerated licensing process, which is designed to simplify the operations of virtual asset trading platforms (VATPs).

The SFC’s decision comes after the exchanges addressed comments received during site inspections.

The move follows the previous issuance of licenses to three other platforms – OSL, HashKey and HKVAX – highlighting the regulator’s ongoing efforts to strengthen the licensing framework for cryptocurrency companies.

In June 2023, Hong Kong officially launched a cryptocurrency licensing system, which allows licensed exchanges to offer retail trading services. The Supreme Financial Supervisory Authority stressed its commitment to speeding up the licensing process.

Eric Yip, Executive Director of Brokers at SFC, male The agency has been actively working with senior management of virtual asset trading platforms (VATPs) to clarify regulatory expectations and accelerate the licensing timeline.

In a related announcement, the Financial Supervision Commission (SFC) clarified new details regarding the revamped licensing process. This includes rigorous evaluations of applicants’ platform policies, procedures, systems and controls, which must be certified by a qualified public accountant.

The Supreme Financial Supervisory Committee will oversee the Phase II evaluation in collaboration with the VATPs and their external evaluators, with the potential to expand the scope of their work upon successful completion.

In addition, Joseph Chan, Acting Minister of Financial Services and Treasury, revealed plans to establish an advisory committee for licensed cryptocurrency trading platforms, which is expected to begin operations early next year. This initiative reflects Hong Kong’s proactive approach to promoting a regulated environment for the thriving cryptocurrency industry.