Hong Kong to issue more crypto licenses by year-end

Three virtual asset trading platforms are already licensed.

The Securities and Futures Commission (SFC) announced plans to grant additional licenses for virtual asset trading platforms by the end of the year, marking a significant move toward a regulated cryptocurrency market.

Speaking at Hong Kong FinTech Week, Dr Eric Yip, SFC Executive Director highlighted the momentum in Hong Kong’s virtual asset sector, noting robust transaction growth from 2023 to 2024. He confirmed that three virtual asset trading platforms (VATPs) are already licensed, with 14 more applications in progress.

“In only five months, we have completed all the on-site inspections and provided feedback to the applicants. During the inspection, the SFC has been able to learn about these firms’ state of compliance first-hand, and directly engage with their personnel and, more importantly, their ultimate controllers to facilitate their understanding of our expectations,” Yip said.

The SFC has adopted a swift licensing process, completing on-site inspections for all “deemed” VATP applicants who were operating in Hong Kong before June 2024. The regulatory body plans to license several of these platforms, allowing them to operate under restricted conditions, with a pathway to full operational clearance after a third-party review.

This regulatory drive aligns with Hong Kong's strategic goal to balance market innovation with investor protection, a commitment underscored by the SFC's “same business, same risks, same rules” approach.