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KeyTakeaways:
Hong Kong grants provisional licenses to 4 new crypto exchanges, totaling seven licensed platforms. Exchanges should meet additional regulatory necessities earlier than full licensing in second section. Hong Kong’s swift licensing course of attracts crypto companies whereas making certain investor safety.
Hong Kong is constant its efforts to place itself as a worldwide crypto hub, because the Hong Kong Securities and Futures Fee (SFC) just lately accredited 4 new digital asset buying and selling platforms (VATPs) beneath its swift licensing course of.
This brings the whole variety of licensed exchanges within the metropolis to seven. Nevertheless, these exchanges should nonetheless cross extra regulatory hurdles earlier than absolutely working with out restrictions. The swift licensing course of is designed to hurry up approvals, a response to the rising demand for clearer and extra environment friendly crypto rules within the area.
On Dec 19, the SFC introduced that 4 new companies had handed preliminary inspections and had been granted provisional approval to function beneath the primary section of the licensing course of.
These platforms, Accumulus GBA Expertise Co Ltd, DFX Labs Co Ltd, Hong Kong Digital Property EX Ltd, and Thousand Whales Expertise Ltd, at the moment are approved to conduct enterprise inside a restricted scope whereas engaged on assembly additional regulatory necessities.
The swift licensing course of was established to assist digital asset platforms start working extra rapidly whereas making certain they meet the SFC’s requirements. This streamlined method goals to steadiness fostering innovation within the crypto area and sustaining investor safety.
The Subsequent Steps for Full Licensing
Regardless of receiving preliminary approval, these exchanges nonetheless have to clear the second section of the regulatory course of. This stage assesses whether or not the exchanges’ inside insurance policies, programs, and procedures align with regulatory necessities.
Moreover, platforms should endure assessments to make sure their compliance with anti-money laundering (AML) and counter-financing terrorism (CFT) guidelines.
According to the SFC’s up to date method, the second section will contain a extra direct engagement between regulators and the exchanges’ senior administration. An authorized public accountant can even be required to confirm that the platform’s insurance policies are consistent with the rules set for VATPs.
Hong Kong’s Rising Crypto Panorama
The latest approvals sign Hong Kong’s ongoing efforts to broaden its crypto market and improve regulatory readability. Since implementing the swift licensing course of, the town has already seen approvals for different platforms like OSL, HKVAX, and HashKey earlier this yr.
Nevertheless, the complexity of the licensing course of has led some main exchanges, together with OKX, to withdraw from the market.
Whereas a number of purposes are nonetheless beneath assessment, the SFC’s swift licensing technique addresses these challenges and makes Hong Kong a beautiful vacation spot for crypto companies.
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