Hong Kong Completes First Phase of Crypto Platforms Review

Hong Kong is quickly advancing towards a crypto-friendly environment as it completes the first phase of crypto trading platforms review.

The CEO of the Hong Kong Securities and Futures Commission, Leung Fung-yee, has announced that the first phase of on-site reviews of virtual asset trading platforms (VATPs) is completed in succession.

According to the local media outlet, Fung-yee shared that the limitations found during the on-site reviews had been notified to the applicant platforms, and they will be required to make improvements.

 Fung-yee informed that the Hong Kong SFC will announce the next phase of the plan in due course. If platforms meet the standards laid down by the regulators, then they will be licensed and applicants that receive deficiencies pointed out by the SFC will have to submit plans to the SFC for improvement. In accordance with the previous VATP transition period, the next phase of the plan will also add a deadline. 

We had previously reported that 11 of Hong Kong’s crypto asset platforms are expected to get licenses before the end of the year. As goes the norm, applicants that do not meet the conditions within the deadline will lose the “deemed license” and will be able to close their Hong Kong business in an orderly manner.

Fung-yee also mentioned that the Securities Regulatory Commission has also strengthened its warnings on high concentration of ownership to protect the interests of investors. And issued 6 warnings on high concentration of ownership between June and September this year. This number is higher than in the past, and the Commission monitors stocks that are included in the index and stocks that rise and fall sharply.

Also Read: Hong Kong’s Crypto Securities Activities Revenue Was $77M Yuan in Q1 2024