Hong Kong’s Securities and Futures Commission (SFC) has issued licenses to four virtual asset trading platforms (VATPs), marking another step in its fast-tracked regulatory framework, according to a Dec. 18 statement.
These platforms are Accumulus Technology Ltd., DFX Labs Company Ltd., Hong Kong Digital Asset EX Limited and Thousand Whales Technology Ltd.
Seven crypto trading platforms are now licensed in Hong Kong to offer retail service to customers, which includes HashKey Group (HKVAX), OSL (the Hong Kong Virtual Asset Exchange), and HashKey Group.
License regimes
SFC said that firms recently granted restricted licenses underwent on-site inspections in early this year, as part of guidelines implemented in June. These inspections had identified some areas that needed improvement. The firms then addressed these to obtain their restricted licenses.
Initial restrictions are attached to the licenses, but they will be removed after platforms have passed a second phase assessment by independent evaluators. It will be used to ensure that platforms comply with the regulatory standards required for operational functionality.
SFC stressed that VATPs should conduct penetration and vulnerability tests by independent third-parties. The SFC stressed that these evaluations were crucial to maintain security, and they aligned with international standards.
The SFC’s Executive Director of Intermediaries, Eric Yip, stated that the licensing process involved close collaboration with the VATPs’ leadership teams. He highlighted the Commission’s dual focus on protecting investors while fostering growth in Hong Kong’s virtual asset ecosystem.
Yip Said:
“We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.”
Meanwhile, this development aligns with the SFC’s broader plan to expand the licensing of crypto businesses by year-end. The regulator announced in October that it is considering granting licenses to 11 more VATPs. Approvals are expected to be granted by batches.
The SFC’s proactive approach highlights Hong Kong’s commitment to becoming a global hub for virtual asset innovation while maintaining robust investor safeguards.
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