Gairika Mitra
In celebration of its 35th anniversary, the Hong Kong Securities and Futures Commission (SFC) has expressed a growing commitment to being more open to virtual asset trading platforms (VATPs). Liang Fengyi, the chief executive of the China Securities Regulatory Commission, shared this direction in an exclusive interview with Hong Kong 01.
Liang emphasized that the Hong Kong SFC aims to complete this comprehensive framework by 2025, which includes promoting the tokenization of traditional products and leveraging regional chain and Web 3.0 technologies.
The SFC’s new strategic priorities, which will guide its efforts from 2024 to 2026, focus on enhancing market resilience, improving the global competitiveness and attractiveness of Hong Kong’s capital market, leading the financial market’s technological transformation, and strengthening institutional resilience and operational efficiency.
Progress in Licensing Virtual Asset Trading Platforms
The SFC issued a third license to the Hong Kong Virtual Asset Exchange (HKVAX), shortly after the issuance of licenses to the OSL Exchange and HashKey Exchange, as part of efforts to regulate VATPs.
Liang reportedly mentioned that an additional 11 platforms are in the licensing pipeline, with the first phase of on-site reviews already completed. These applicants are then required to make necessary rectifications, and the SFC aims to issue licenses in batches before the end of the year.
“Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally,” Liang explained.
In addition to VATPs, Liang also addressed the need for a new licensing system for cryptocurrency over-the-counter (OTC) services and custody solutions. The Hong Kong SFC is currently soliciting feedback from industry stakeholders.
Hong Kong Emerges as a Leading Crypto Hub in Eastern Asia
The Shib Daily reported earlier that Hong Kong regulators, the Hong Kong Monetary Authority (HKMA) and the SFC, unveiled plans to align their reporting framework for over-the-counter (OTC) derivatives with global standards. This will include crypto derivatives. The decision was shared in a consultation paper released in March 2024, and the final implementation deadline is set for September 29, 2025.
Another report highlighted Hong Kong’s emergence as a leading crypto hub in Eastern Asia. “It’s no surprise that Hong Kong has seen the highest year-over-year growth in the region at 85.6%, ranking 30th globally on our Global Crypto Adoption Index,” the report stated.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
