Hong Kong Licenses Four New Exchanges To Boost Crypto Hub Drive

Hong Kong is making bold strides to cement its position as a global cryptocurrency hub. The government has granted licenses to four new exchanges under its streamlined regulatory regime. The Securities and Futures Commission (SFC) announced on Wednesday that HKbitEX , Accumulus, DFX Labs, and EX.IO have joined the ranks of licensed platforms in the country. This builds on the momentum pioneers OSL, HashKey, and HKVAX set earlier. Hong Kong’s Crypto Push: Fast-Track Licensing Hong Kong launched a licensing framework for virtual asset trading platforms (VATPs) in June 2023 to stay ahead in the global crypto race. This allowed licensed exchanges to offer retail trading, signaling the city’s ambition to attract crypto firms and investors. Recently, the SFC introduced a “swift licensing process” to speed up approvals while upholding strict regulatory standards. This involves close collaboration with VATP management, ensuring clear communication of expectations. By working directly with applicants, the SFC helps address issues early, streamlining the approval process. Eric Yip, the SFC’s Executive Director of Intermediaries, emphasized this hands-on approach as key to maintaining compliance and efficiency. Hong Kong Rolled Out A Two-Phase Path to Regulatory Compliance To obtain a license under Hong Kong’s crypto regulatory framework, exchanges must undergo a rigorous two-phase evaluation process. The first phase focuses on foundational aspects of the exchange’s operations. It involves detailed on-site inspections where the regulator examines the platform’s internal policies, procedures, systems, and controls. These include how the exchange manages risks, safeguards client assets, and adheres to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. A key requirement during this stage is independent validation. A certified public accountant must review and certify the adequacy of the platform’s systems and controls. This ensures transparency and adds a layer of external scrutiny to the process. The second phase is a detailed review led by the SFC, requiring the platform to work closely with external assessors and the regulator. Restrictions on the platform’s operations are lifted only after completing this phase. Hong Kong’s Consultative Panel on the Horizon Hong Kong plans to strengthen its support for the crypto industry by enhancing regulatory collaboration. Joseph Chan, the acting Secretary for Financial Services and the Treasury, recently announced the launch of a consultative panel. This panel is scheduled to begin operations early next year. This panel will create a platform for ongoing dialogue between the SFC and licensed crypto trading platforms. This initiative ensures that regulations remain adaptable to the rapidly evolving crypto landscape. This step underscores Hong Kong’s ambition to maintain its position as a global leader in the cryptocurrency space. The post Hong Kong Licenses Four New Exchanges To Boost Crypto Hub Drive appeared first on TheCoinrise.com .