Hong Kong Plans More Crypto Exchange Approvals Amid Regulatory Challenges
The Hong Kong Securities and Futures Commission (SFC) plans to approve more cryptocurrency exchanges by the end of 2024, as revealed by CEO Julia Leung.
She stated on October 6 that 11 platforms are currently undergoing on-site evaluations and are expected to progress in their application processes.
This update follows the recent regulatory approval of HKVAX, which is now the third exchange to be licensed in Hong Kong, alongside HashKey and OSL. Bullish, which owns CoinDesk, is also pursuing a license.
However, the SFC’s stringent licensing requirements have faced criticism, potentially limiting Hong Kong’s goal of becoming a key player in the cryptocurrency and Web3 sectors. Reports have emerged indicating that the SFC identified deficiencies in some exchanges, particularly regarding custody practices and cybersecurity measures.
READ MORE: UAE to Abolish VAT on Cryptocurrency Transactions
Despite attempts to attract major players like Coinbase, several international exchanges, including OKX and Bybit, have pulled their applications. This may be linked to SFC directives that prevent mainland Chinese residents from accessing these services.
The SFC has also dealt with backlash following the collapse of JPEX, a fraudulent exchange that left thousands of investors in Hong Kong with significant losses. Following an investigation into JPEX, over 70 arrests have been made. In response, the SFC is implementing measures to improve transparency for licensed exchanges and is seeking feedback on regulating over-the-counter trading and custody services.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
