Unlicensed cryptocurrency platforms will not be allowed to operate in Hong Kong starting next June, according to the Securities and Futures Commission (SFC). The commission closed the period for these institutions to introduce their applications to obtain a license on February 29 and will progressively expel the noncompliant exchanges from the Hong Kong market.
Hong Kong Reiterates Unlicensed Cryptocurrency Platforms Will Be Expelled by June
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Hong Kong To Expel Unlicensed Cryptocurrency Platform From Local Market
The Hong Kong Securities and Futures Commission (SFC) has declared that unlicensed cryptocurrency platforms will not be able to operate in the local market starting next June. The commission closed a process that allowed crypto companies to apply for a license to operate in Hong Kong on February 29.
As part of the city’s ongoing cryptocurrency platform licensing process, the commission has published a list of exchanges that applied to receive this license. 24 platforms applied to receive the greenlight status for offering their services in Hong Kong. If licensed, these exchanges will provide bitcoin and ether-centric services to Hong Kong citizens, while other cryptocurrencies are still being examined.
Only two cryptocurrency platforms have previously been licensed by the commission: the OSL Exchange, which received its license in 2020, and Hashkey, which received it in 2022. Julia Leung Fung-yee, CEO of the SFC, stated that all users should pay attention to whether the trading platforms operate with a valid license.
Leung Fung-yee’s remarks come after the commission urged investors to check the status of the trading platform regarding its operating license, inviting them to use only exchanges that are licensed or have applied to receive an operating license from the SFC. It emphasized that investors using unlicensed trading platforms may “leave themselves unprotected.”
But Hong Kong plans to issue comprehensive regulations for these platforms shortly, according to the Hong Kong Monetary Authority (HKMA) chief executive, Eddie Yue Wai-man. Wai-man reinforced that Hong Kong’s financial regulators were working to achieve this objective.
What do you think about the licensing processes that Hong Kong is expediting for cryptocurrency platforms? Tell us in the comments section below.
