Daniel Walker
Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), has issued its third crypto trading platform license under the city’s new licensing regime. According to a report by local media outlet HK01, the SFC plans to approve additional platforms on its “deemed-to-be-licensed” list by the end of 2024.
In an interview published on Monday, Julia Leung, CEO of the Hong Kong Securities and Futures Commission, announced that HKVAX had been granted approval to operate as a crypto exchange, joining OSL and HashKey as the only platforms officially licensed under the new regulatory framework. HKVAX focuses on security token offerings, real-world asset tokenization, and offers services like over-the-counter trading, exchange, and custody solutions.
Anthony Ng, co-founder and CEO of HKVAX, highlighted that this approval aligns with Hong Kong’s broader strategy to establish itself as a global financial hub, particularly in the virtual asset industry. “Obtaining the license affirms HKVAX’s commitment and demonstrates Hong Kong’s determination to lead in the virtual asset space,” Ng said in a statement.
Leung noted that 11 platforms are currently listed as “deemed-to-be-licensed” virtual asset trading applicants. The regulator has already completed its first round of inspections and has requested these platforms to make necessary adjustments. The SFC is targeting further progress by year-end, with plans to issue additional licenses in batches.
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Concerns Over Strict Regulations
While the licensing regime aims to bolster Hong Kong’s status as a key player in the global crypto market, not everyone is convinced. Duncan Chiu, a Hong Kong lawmaker, criticized the licensing requirements as being “excessively stringent.” He believes the strict rules are deterring global exchanges from entering Hong Kong’s market. Several major exchanges, including OKX, Gate.io, and HTX, have withdrawn their applications. However, Bullish and Crypto.com remain on the SFC’s list of applicants.
In June 2023, Hong Kong officially launched its licensing regime for crypto trading platforms, allowing licensed exchanges to provide retail trading services. This move is part of the city’s broader initiative to become a leading financial center for both traditional and digital assets, particularly by attracting crypto firms to the region. Despite the stringent rules, the SFC remains focused on developing a regulatory environment that balances innovation and investor protection.
