The Hong Kong Securities and Futures Commission (SFC) is ramping up its regulatory measures for virtual asset trading platforms (VATPs). SFC CEO Leung Fung-yee announced that the first audit phase has concluded, revealing several deficiencies that have been reported back to the platforms. These entities are now mandated to make essential improvements to continue their operations in the region.
What Changes are Coming for Licensing?
Since June, the SFC has implemented new licensing regulations for VATPs, granting them a temporary “deemed license” status. However, this provisional period ended in May 2023, prompting the initiation of formal audits for 11 platforms.
Which Platforms are Under Review?
The SFC’s website lists platforms such as HKbitEX, PantherTrade, and Crypto.com among those with temporary licenses. These platforms must rectify their deficiencies and adhere to the SFC’s standards to qualify for conditional licensing, failing which they will be required to cease operations.
Key Takeaways:
- The SFC has completed the initial audit of VATPs.
- Platforms with deficiencies must submit a corrective action plan.
- Conditional licenses will be awarded only to compliant platforms.
- Failure to comply will result in loss of temporary licenses.
- Investor warnings have increased to ensure market safety.
The SFC has also raised concerns regarding platforms that engage in stock market activities, providing additional investor warnings to safeguard interests. This heightened vigilance marks a significant shift towards stricter oversight in Hong Kong’s financial landscape.