Hong Kong Sets Deadline for Crypto Exchanges to Comply
Hong Kong’s Securities and Futures Commission (SFC) has closed its crypto license application portal, signaling a deadline for crypto exchanges to comply with regulations. Exchanges that missed the deadline must cease operations by May 31, according to a pop-up message on the SFC website.
22 Exchanges Apply for Approval
The SFC has released a list of crypto exchanges that have applied for approval. So far, 22 exchanges have taken steps towards obtaining the necessary license to operate in Hong Kong. Popular platforms such as OKX, Bybit, Crypto.com, and Huobi are among those that have initiated the licensing procedures.
Deadline for Noncompliant Platforms
Agencies that have not completed the application process by the February 29 deadline have until May 31 to shut down their operations in Hong Kong. The SFC advises investors to transfer their digital assets to regulated platforms or those seeking licensing approval.
Approval Process and Updates
All applicants will be informed of their status by June 1, 2024. The SFC will update its public register to indicate which exchanges have been approved and which have been rejected.
Approved Exchanges
Currently, only two crypto exchanges have been approved by the SFC: HashKey Exchange and OSL Digital Securities. HashKey received approval in November 2022, while OSL Digital Securities was approved in December 2022.
Rejected and Withdrawn Applications
The SFC has also released a list of crypto exchanges whose applications have been withdrawn or rejected. The list includes Ammbr HK Limited, BitHarbour HK Limited, Meex Digital Securities Limited, and HBGL HK Limited. Meex Digital Securities Limited’s application was returned by the SFC, while the other three exchanges voluntarily withdrew their applications.
HSBC Hong Kong to Support Tokenized Assets Investments
HSBC, the Hong Kong and Shanghai Banking Corporation, is taking steps to offer investment opportunities in physical and virtual assets to its Hong Kong customers. The bank aims to unlock the potential of blockchain technology, comply with regulations, and provide wider access to the virtual asset landscape.
This initiative is not HSBC’s first involvement with blockchain. The bank previously participated in a funding round for MediConCen, a blockchain insurance startup.
Hot Take: Hong Kong Cracks Down on Crypto Exchanges
Hong Kong’s Securities and Futures Commission (SFC) has set a deadline for crypto exchanges to comply with regulations or face closure. With the closure of the crypto license application portal, exchanges that missed the deadline have until May 31 to cease operations in Hong Kong. This move aims to enhance safety and regulatory compliance in the crypto industry.
On a positive note, HSBC Hong Kong is embracing blockchain technology by offering investment opportunities in both physical and virtual assets. This demonstrates the growing acceptance of blockchain in traditional financial institutions and its potential for unlocking new investment avenues.
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