Hong Kong Completes First Phase of crypto Trading Platform Review
Hong Kong is making significant strides towards becoming a Crypto-friendly environment as it wraps up the first phase of its review of Crypto trading Platforms. The CEO of the Hong Kong Securities and Futures Commission, Leung Fung-yee, recently announced the completion of the on-site reviews of Virtual asset trading platforms (VATPs).
Phase One Completion
According to a report by a local media outlet, Fung-yee stated that the limitations identified during the on-site reviews have been communicated to the applicant platforms. These platforms will now be required to make the necessary improvements to meet regulatory standards.
Next Steps
- The Hong Kong SFC will announce the next phase of the plan in the coming days.
- Platforms that meet the regulatory standards will be granted licenses.
- Applicants with deficiencies will need to submit improvement plans to the SFC.
- A deadline will be set for compliance with the standards.
It was previously reported that 11 of Hong Kong’s crypto asset platforms are expected to receive licenses by the end of the year. Applicants who fail to meet the requirements within the deadline will forfeit their "deemed license" and will have to wind up their Hong Kong operations in an orderly manner.
In addition to the platform reviews, Fung-yee highlighted that the Securities Regulatory Commission has intensified its warnings regarding high concentration of Ownership to safeguard investor interests. The commission issued six warnings on high Ownership concentration between June and September this year, a higher number compared to previous periods. The commission closely monitors stocks included in the index as well as those experiencing significant Price fluctuations.
For more information on Hong Kong's crypto activities revenue, check out our article on Hong Kong’s Crypto Securities Activities Revenue in Q1 2024.
Conclusion
Hong Kong's journey towards becoming a more crypto-friendly environment is gaining momentum with the completion of the first phase of the review of crypto trading platforms. The next phase of the plan will determine which platforms meet regulatory standards and are granted licenses, while others will be required to address deficiencies. This regulatory push underscores Hong Kong's commitment to fostering a transparent and secure crypto trading environment for investors.
