Hong Kong's Crypto Exchanges will Soon Get Licensing Guideline

The crypto exchanges in Hong Kong (HK) will soon work under the new licensing framework.
According to a report, the regulators in Hong Kong are working to draw up a cryptocurrency framework next month.

Hong Kong’s Securities and Futures Commision (SFC) is working to issue crypto exchange license guidelines in the next month. A recent report by Bloomberg, stated that SFC or the regulator will release guidelines on the licensing regime for virtual-asset exchanges in May.

It must be noted that Hong Kong offers a developed financial system along with a business-friendly regulatory environment. This makes the city a gateway to Asia and an ideal destination for most of the companies around the globe.

SFC CEO Shares The Plan for Crypto Exchanges

In an event, its Chief Executive Officer (CEO) Julia Leung shared about their plan. She has extensive experience in financial regulation, market development and international cooperation. On April 27 she shared about, “a consultation process for the regulatory framework that will apply to crypto exchanges garnered more than 150 responses.”

Furthermore, the report states Hong Kong is planning “to allow retail investors to trade top cryptocurrencies like Bitcoin and Ether in a new licensing regime for crypto platforms due on June 1.” The city also aims to develop a digital-asset center “to burnish its role as a financial hub.”

Back in February this year, HK also outlined a plan to allow the retail investors trade digital tokens such as Bitcoin and Ether. The securities regulator issued a consultation paper on the plan. However, this showed its efforts to become a crypto hub in a policy shift which contrasts with a crackdown in the U.S.

As Bloomberg detailed, the individual investors would be allowed to trade larger coins on exchanges licensed by the SFC. It provides safeguards such as knowledge tests, risk profiles and reasonable limits on exposure are put in place, the regulator said in a consultation paper in mid of February.

Earlier in March, the crypto exchange BTSE announced its plans to apply for upcoming virtual asset licenses in Hong Kong. The exchange is hoping to enter the increasingly crypto-friendly market by taking this step. According to the Yahoo Finance report, BTSE’a Hong Kong based team are working towards their expansion in the city. While they are also hiring for roles in legal, compliance and sales once they receive necessary licenses from HK’s SFC.

The expansion plan of BTSE follows HK’s proposed introduction of new regulations for crypto trading platforms, which will go into effect in June this year. After getting a license to operate in HK, BTSE will offer its advanced trading and custody services to a broader range of customers.

According to CoinMarketCap, Bybit, KuCoin, and Gate(dot)io, some of the leading crypto exchanges of Hong Kong came under the top-10 cryptocurrency spot exchanges. The ranking of these crypto exchanges is based on the traffic, liquidity, trading volumes, and confidence in the legitimacy of trading volumes that has been reported on the platform.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing