Hong Kong Accelerates Crypto Exchange Licensing with Four New Approvals

Hong Kong is making bold strides to solidify its status as a global cryptocurrency hub. This week, the region’s Securities and Futures Commission (SFC) granted licenses to four additional crypto exchanges, marking a significant step forward in its efforts to streamline the licensing process.

Four New Crypto Exchanges Approved

On Wednesday, the SFC announced that HKbitEX, Accumulus, DFX Labs, and EX.IO have successfully obtained licenses under the regulator’s “swift licensing process.” This process was designed to expedite approvals for exchanges that meet Hong Kong’s stringent regulatory standards. The approval follows thorough on-site inspections and feedback reviews by the applicants.

These four exchanges join the ranks of OSL, HashKey, and HKVAX, which were previously licensed. The recent approvals come months after Hong Kong launched its official licensing regime for virtual asset trading platforms (VATPs) in June 2023. This move allowed licensed exchanges to offer retail trading services, further opening the region to crypto innovation.

New Licensing Framework and Supervision

To support the rapid licensing of crypto firms, the SFC has implemented a revamped framework emphasizing proactive engagement and detailed assessments. Executive Director of Intermediaries Eric Yip explained, “We have been proactively engaging with VATPs’ senior management and ultimate controllers, which helps drive home our expected regulatory standards and expedite our licensing process.”

Under the new process, applicants undergo a two-phase assessment. This includes reviews of their policies, systems, and controls by certified public accountants. The SFC oversees the process closely, ensuring applicants meet the required standards before restrictions on their business scope are lifted.

Looking ahead, Hong Kong is preparing to establish a consultative panel for licensed crypto platforms. According to Joseph Chan, Acting Secretary for Financial Services and the Treasury, the panel is set to commence early next year, reinforcing the region’s commitment to becoming a leading destination for crypto firms.

With these developments, Hong Kong continues to position itself as a key player in the global crypto market, combining regulatory clarity with a welcoming environment for innovation.