Hong Kong Opens Cryptocurrency Exchange Fast Lane — TradingView News

Hong Kong’s Securities and Futures Commission (SFC) has unveiled a simplified licensing approach for virtual asset trading platforms (VATPs), marking another significant shift in the region’s cryptocurrency regulatory landscape in recent months.

Hong Kong is simplifying the process of licensing a cryptocurrency trading platform

The new framework eliminates the previous two-stage evaluation system in favor of a single, comprehensive external evaluation. Under this streamlined process, VATP applicants must first implement their own operational infrastructure before undergoing an external assessment, with the SFC actively involved in the assessment process. Dr. Eric Yip, Executive Director of Brokers at SFC

“The SFC is committed to promoting a healthy ecosystem and strong regulatory framework for the development of virtual assets in Hong Kong,” said Dr. Eric Yip, Executive Director of Brokers at SFC.

“With the new approach, we will strengthen our collaboration with VAT applicants, provide them with constructive and timely feedback, thus enabling fully compliant VAT applicants to deliver their services to investors more quickly.”

This represents another significant change following the decision made by the SFC on June 1, 2024 to once again allow retail customers to trade cryptocurrencies. However, the regulator has also imposed additional responsibilities on companies in this sector, requiring them to comply with regulations or face legal consequences. The last step aims to simplify the process of obtaining a license.

The revamped process offers several innovations:

• Tripartite engagement – ​​The SFC will become a direct party to the assessment process, working alongside the platform operator and the external assessor to ensure regulatory compliance.
• Streamlined assessment – ​​Applicants must now deploy all systems and controls before commencing the external assessment, ensuring a more practical and efficient assessment of operational readiness.

As Finance Magnates recently reported, in October, 11 cryptocurrency platforms were still under regulatory review several months later. The industry has criticized the local regulator for overly strict regulations, prompting several major players, including OKX and Bybit, to withdraw from the application process. SFC representatives hope that the current changes will encourage exchanges to enter the market.

This regulatory development follows the licensing of four VATPs in December 2024, reflecting Hong Kong’s efforts to strengthen its position as a virtual assets hub.