Hong Kong Establishes Itself as a Global Crypto Hub
In a significant move towards solidifying its position as a global crypto hub, Hong Kong has granted licenses to four more crypto exchanges. The Securities and Futures Commission (SFC) recently approved licenses for Accumulus, HKbitEX, DFX Labs, and EX.IO, following on-site inspections and responses from the exchanges to the regulator.
These licenses come on the heels of previous approvals granted to OSL, HashKey, and HKVAX, demonstrating Hong Kong’s proactive efforts to establish a regulated market for crypto firms. The efficient licensing process employed by the SFC has set Hong Kong apart in the competitive landscape of global cities vying for leadership in the cryptocurrency market.
The Efficient Licensing Process of the SFC
On the 12th of June 2023, Hong Kong officially began the licensing of Virtual Asset Trading Platforms (VATPs), allowing licensed exchanges to offer retail trading services. The SFC has been directly engaging with the senior management of VATPs to explain regulatory standards, ensuring a smooth and speedy licensing process.
In a recent circular, the SFC detailed the compliance evaluations required for exchanges, including platform policies, procedures, and controls. These evaluations must be certified by a public accountant, followed by a second-phase evaluation with external evaluators. Upon satisfactory completion, limitations on business scope are lifted, enabling exchanges to operate freely.
Ng Kit-chuang’s Proposal for Cryptocurrency Investments
Lawmaker Ng Kit-chuang has proposed that Hong Kong invest its fiscal reserves in cryptocurrencies, recommending the deployment of the Exchange Fund for virtual commodity investments. This move would align Hong Kong with global trends, as financial institutions worldwide increasingly integrate cryptocurrencies into their portfolios. Embracing digital assets in fiscal reserves could position Hong Kong as a modern financial city on the cutting edge of innovation.
Hong Kong’s Commitment to the Crypto Industry
With its liberal licensing regime and evolving legislation, Hong Kong is steadily climbing the ranks in the crypto industry. The recent licensing approvals underscore Hong Kong’s dedication to fostering a thriving crypto ecosystem. The proposal to include digital assets in fiscal reserves further highlights the city’s ambition to become a prominent crypto hub on the world stage.