Hong Kong’s Securities and Futures Commission (SFC) has doubled the number of licensed virtual asset trading platforms (VATPs). In fact, approvals were granted to four new companies.
The new licenses have been awarded to Accumulus GBA Technology (Hong Kong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI). They received their licenses on December 18, 2024, joining existing platforms HashKey, OSL, and HKVAX.
Approvals come under sfc Fast licensing process for “It is considered licensed” VAT applicants.
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The exchanges underwent on-site inspections
As part of this process, exchanges underwent on-site inspections. Key regulatory requirements, such as client asset protection and know your customer (KYC) are addressed. procedures, and cybersecurity measures.
“WWe have been proactively dealing with Value added tax Top management and final controllers any Helps enhance our expected regulatory standards and accelerate our VAT licensing process,” Eric Yip said, sfc Executive Director of Brokers.
The newly licensed exchanges will initially operate within a restricted scope. they Required to perform vulnerability assessments and penetration tests with third party verification Before restrictions are lifted.
Furthermore, the Supreme Financial Supervision Committee will closely supervise this process. The regulatory body has issued a circular outlining its expectations regarding VAT.
Currently, all licensed platforms are authorized to trade securities, provide automated trading services, and act as VATPs. Currently, there are 11 additional VATP devices on applicant List, seven of them have “It is considered licensed” condition.
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The Hong Kong Football Council (SFC) has approved and listed four new names #Bitcoin And cryptocurrency trading platforms.
China is preparing
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– Bitcoin Magazine (@BitcoinMagazine) December 18, 2024
the sfc The website warns users to only trade on licensed platforms. However, it is possible to interact with exchanges that carry “It is considered licensed” condition. This step is in line with sfc A broader strategy to regulate and enhance the cryptocurrency trading framework in the region.
Julia Leung, CEO of SFC, said: The new licenses will be granted in batches as part of a regulatory roadmap until 2026. The plan aims to enhance oversight, support real-world asset tokenization, and explore blockchain Technology potential in financial markets.
Hong Kong The current retail cryptocurrency market is still limited to four available coins: Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Chainlink (LINK).
Retail cryptocurrency trading has been officially legalized In August 2023.
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Hong Kong accelerates cryptocurrency regulation
Recently, the Hong Kong Govt Announced plans for implementation Mandatory framework for reporting crypto assets by 2026.
The proposed crypto asset reporting framework would require a tax-paying population in country to annually Report their crypto accounts and transactions.
Moreover, Hong Kong too He said it is being rolled out A plan to exempt private equity funds, hedge funds, and investment vehicles of wealthy individuals from taxes on gains from cryptocurrencies, private credit investments, and other assets.
The proposal claims that taxes “One of the main considerations” For asset managers when choosing where to locate their operations. By creating a “favorable environment,” The Hong Kong government aims to attract global investors and cryptocurrency companies.
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The article Hong Kong Expands Cryptocurrency Footprint with Licenses for Four More Exchanges appeared first on 99Bitcoins.