The
Securities and Futures Fee (SFC) of Hong Kong unveiled
a streamlined licensing strategy for digital asset buying and selling platforms (VATPs),
marking one other important shift within the area’s cryptocurrency regulatory
panorama in current months.
Hong Kong Streamlines Crypto
Buying and selling Platform Licensing Course of
The new
framework eliminates the earlier two-phase evaluation system in favor of a
single, complete exterior analysis. Underneath this streamlined course of, VATP
candidates should first implement their operational infrastructure earlier than
present process an exterior evaluation, with the SFC actively collaborating within the
analysis course of.
“The SFC is
dedicated to fostering a wholesome ecosystem and a sturdy regulatory framework
for the event of digital belongings in Hong Kong,” stated Dr Eric Yip, the
SFC’s Government Director of Intermediaries.
“With the
new strategy, we are going to improve our collaboration with VATP candidates, offering
them with constructive and well timed suggestions, thereby enabling totally compliant
VATPs to carry their providers to traders extra swiftly,” he continued.
This marks
one other important change following
the June 1, 2024 determination by the SFC to as soon as once more permit retail shoppers to
commerce cryptocurrencies. Nonetheless, the regulator additionally imposed further
duties on corporations within the sector, requiring compliance with rules
or dealing with authorized penalties. The most recent transfer goals to simplify the method of
acquiring a license.
The
revamped course of introduces a number of improvements:
- Tripartite
Engagement: The
SFC will grow to be a direct occasion to the evaluation course of, working alongside the
platform operator and exterior assessor to make sure regulatory compliance. - Streamlined
Analysis: Candidates
should now deploy all programs and controls earlier than the exterior evaluation begins,
making certain a extra sensible and environment friendly analysis of operational readiness.
As lately
reported by Finance Magnates, in October, 11
crypto platforms have been nonetheless underneath regulatory assessment after a number of months.
The business criticized the native regulator for overly strict rules,
main a number of main gamers, together with OKX and Bybit, to withdraw from the
software course of. SFC representatives hope the present modifications will
encourage exchanges to enter the market.
This
regulatory growth follows the licensing of 4 VATPs in December 2024,
reflecting Hong Kong’s efforts to strengthen its place as a digital asset
hub.
This text was written by Damian Chmiel at www.financemagnates.com.
