World Crypto Global
- Written by: Tareq Sikder
- Mon, 03 Jun 2024
- Israel
Hong Kong's Securities and Futures Commission (SFC) hasintroduced new regulations for virtual asset trading platforms (VATPs), whichbecame effective on June 1. Under these regulations, VATPs operating in ormarketing to Hong Kong investors must be licensed by the SFC or qualify as"deemed-to-be-licensed VATP applicants." The aim of these regulationsis to enhance investor protection and market integrity.Implementing Crypto RegulationsThe new rules require comprehensive applications thatinclude management experience, industry qualifications, and externalattestations. They also set specific criteria for token admission, anti-moneylaundering requirements, and prohibitions on proprietary trading.Platforms must also have adequate insurance or compensation arrangements tocover custodial risks.As of the June 1 deadline, only two VATPs have been licensedby the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC has published a list of 17 pending applicants forVATP licenses. The regulator emphasizes that these applicants are not yetlicensed and may not meet regulatory standards. Investors are advised to verifylicenses and exercise caution with unlicensed or provisionally licensedplatforms, which could be shut down if not approved. Hong Kong Reveals 17 Crypto Trading Platform Applicants as New Regulations Take EffectHong Kongs Securities and Futures Commission (SFC) has published a list of two licensed crypto trading platforms and 17 pending applicants under the new regulations that went into effect SmartViewAI.Com (@smartviewai) June 3, 2024Pending Crypto License ApplicationsThe pending applicants for VATP licenses include Hong KongBGE Ltd., Hong Kong Digital Asset EX Ltd., and Hong Kong Virtual Asset ExchangeLtd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd., and Accumulus GBA Technology Co. Ltd.Additional applicants are DFX Labs Company Ltd., NewbxLimited, and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd., and Bullish Ltd. are also seeking licenses.Further, Foris DAX HK Ltd., Whalefin Markets Ltd., andFlying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd.and Bitcoin World Technology Ltd. round out the group of pending applicants.The SFCstresses that operating a VATP without a license is a criminal offense. It hascommitted to taking appropriate actions against any legal breaches. In responseto the new regulatory framework, several crypto exchanges, includingOKX and Gate.hk, have announced that they will cease operations in HongKong.This article was written by Tareq Sikder at www.financemagnates.com.
