• Hong Kong's Securities and Futures Commissions (SFC) set to subject new licensing for crypto exchanges.
• In a bid to control OTC and Custody providers, the Chinese language Securities Regulatory Fee has developed a brand new licensing system.
• Market analysis finds that adoption for cryptocurrency in Hong Kong has continued to soar.

Hong Kong's Securities and Futures Fee (SFC) is on the brink of subject new licenses for cryptocurrency exchanges and crypto-related corporations this yr.

The announcement aligns with the SFC's 2024 to 2026 objectives, which embrace enhancing the panorama of Hong Kong's capital market to strengthen world competitiveness and spearheading the transformation of Hong Kong's monetary market with know-how and ESG, amongst different issues.

Leung Fengyi, CEO of China's Securities Regulatory Fee, spoke concerning the efforts to enhance the Digital Asset Buying and selling Platform (VATP). He famous that the SFC has already issued licenses to a few crypto exchanges: OSL Trade, HashKey Trade, and the Hong Kong Digital Asset Trade (HKVAX).

Fengyi additionally highlighted the significance of strengthening the present regulatory system for digital asset buying and selling platforms, supporting the tokenization of conventional merchandise, and adopting regional chains and Web3 applied sciences. These steps are essential for reworking Hong Kong's monetary market.

China's Securities Regulatory Fee to Concentrate on Custody and OTC Companies

Presently, 11 change platforms are in search of licenses from the SFC. Fengyi supplied some insights into the licensing course of, stating that the primary section of the on-site evaluation is full, and the candidates have been requested to make some modifications to their functions.

The tip objective for the SRC is to make vital progress earlier than the top of the yr, and issuing licenses in batches is likely one of the many milestones it intends to achieve.

“Candidates who don’t meet the necessities will lose their {qualifications} for licensing, whereas candidates who meet the necessities might be granted a license conditionally.” Liang Fengyi asserted.

Bringing readability to over-the-counter (OTC) associated providers, Fengyi defined {that a} new licensing system designed for OTC and crypto custody providers has been developed by the Chinese language Securities Regulatory Fee.

It’s value noting that Cryptocurrency adoption in Hong Kong has been on the rise this yr. Based on the 2024 World Cryptocurrency Adoption Index Rankings revealed by Chainalysis, Hong Kong has recorded the best progress in cryptocurrency actions within the East Asian area.