Regulation

SFC Releases New Crypto Regulations: 2 Platforms Licensed, 17 Awaiting Approval

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Hong Kong’s Securities and Futures Commission (SFC) has introduced new regulations for virtual asset trading platforms (VATPs), which came into effect on June 1. Under these regulations, VATPs operating in or
marketing Investors in Hong Kong must be approved by the SFC or be considered “deemed approved VATP applicants”. The aim of these regulations is to strengthen investor protection and market integrity.

The new rules require comprehensive applications including management experience, industry qualifications and external certifications. They also set specific criteria for the admission of tokens, anti-money laundering requirements and bans on proprietary trading. Platforms must also have adequate insurance or compensation arrangements to cover custody risks.

As of the June 1 deadline, only two VATPs had obtained a license from the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC has published a list of 17 candidates awaiting VATP licenses.

The regulator emphasizes that these candidates are not yet approved and may not meet regulatory standards. Investors are advised to check licenses and exercise caution with unlicensed or provisionally licensed platforms, which could be shut down if not approved.

Pending Crypto License Applications

Applicants awaiting VATP licenses include Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd. and Hong Kong Virtual Asset Exchange Ltd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd. and Accumulus GBA Technology Co..

Additional applicants are DFX Labs Company Ltd., Newbx Limited and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd. and Bullish Ltd. are also looking for licenses.

Additionally, Foris DAX HK Ltd., Whalefin Markets Ltd. and Flying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd. and Bitcoin World Technology Ltd. complete the group of waiting candidates.

THE SFC
underlines that operating a TVAV without authorization constitutes a criminal offence. It is committed to taking appropriate measures against any violation of the law. In response to the new regulatory framework, several crypto exchanges, including OKX and Gate.hk, announced that they would cease operations in Hong Kong.

Hong Kong’s Securities and Futures Commission (SFC) has introduced new regulations for virtual asset trading platforms (VATPs), which came into effect on June 1. Under these regulations, VATPs operating in or
marketing Investors in Hong Kong must be approved by the SFC or be considered “deemed approved VATP applicants”. The aim of these regulations is to strengthen investor protection and market integrity.

The new rules require comprehensive applications including management experience, industry qualifications and external certifications. They also set specific criteria for the admission of tokens, anti-money laundering requirements and bans on proprietary trading. Platforms must also have adequate insurance or compensation arrangements to cover custody risks.

As of the June 1 deadline, only two VATPs had obtained a license from the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC has published a list of 17 candidates awaiting VATP licenses.

The regulator emphasizes that these candidates are not yet approved and may not meet regulatory standards. Investors are advised to check licenses and exercise caution with unlicensed or provisionally licensed platforms, which could be shut down if not approved.

Pending Crypto License Applications

Applicants awaiting VATP licenses include Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd. and Hong Kong Virtual Asset Exchange Ltd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd. and Accumulus GBA Technology Co..

Additional applicants are DFX Labs Company Ltd., Newbx Limited and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd. and Bullish Ltd. are also looking for licenses.

Additionally, Foris DAX HK Ltd., Whalefin Markets Ltd. and Flying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd. and Bitcoin World Technology Ltd. complete the group of waiting candidates.

THE SFC
underlines that operating a TVAV without authorization constitutes a criminal offence. It is committed to taking appropriate measures against any violation of the law. In response to the new regulatory framework, several crypto exchanges, including OKX and Gate.hk, announced that they would cease operations in Hong Kong.

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