Securities and Futures Commission Licenses Four Virtual Asset Trading Platforms in Hong Kong
The Securities and Futures Commission (SFC) in Hong Kong recently issued licenses to four virtual asset trading platforms (VATPs) as part of its fast-tracked regulatory framework.
Licensed Platforms
- Accumulus GBA Technology Ltd
- DFX Labs Company Ltd
- Hong Kong Digital Asset EX Limited
- Thousand Whales Technology (BVI) Ltd
With these new licenses, the total number of licensed crypto trading platforms in Hong Kong serving retail customers has now reached seven, including HashKey Group, OSL, and the Hong Kong Virtual Asset Exchange (HKVAX).
Licensing Regimes
The SFC conducted rigorous on-site inspections of the newly licensed firms earlier this year to ensure compliance with guidelines introduced in June. These inspections identified areas for improvement, which the firms addressed to secure their restricted licenses.
Initial restrictions come with the licenses, but these will be lifted after the platforms pass a second-phase assessment by external evaluators. This process is designed to ensure that the platforms meet the necessary regulatory standards for full operational functionality.
As part of the licensing requirements, VATPs must conduct vulnerability assessments and penetration tests through independent third parties to maintain security and align with global standards.
Collaborative Approach
Eric Yip, the SFC’s Executive Director of Intermediaries, highlighted the close collaboration with the leadership teams of the VATPs during the licensing process. He emphasized the Commission’s focus on protecting investors while also fostering growth in Hong Kong’s virtual asset ecosystem.
“We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.”
The SFC’s proactive approach aligns with its plan to expand the licensing of crypto businesses by the end of the year. In October, the regulator announced that 11 additional VATPs are under consideration for licenses, with approvals expected to be granted in batches.
This development showcases Hong Kong’s commitment to becoming a global hub for virtual asset innovation while maintaining robust investor safeguards.
