Hong Kong's financial regulator plans to issue more licenses to crypto exchanges and digital asset firms by the end of the year.

Plans for Licensing

Julia Leung, CEO of the Securities and Futures Commission (SFC) of Hong Kong, stated her expectation to make progress in issuing licenses to 11 virtual asset trading platforms currently on the list of potential licensees. Licenses will be issued in batches to facilitate compliance.

SFC's Goals and Approaches

A total of 16 companies are awaiting decisions on their license applications. Julia Leung confirmed that all platforms compliant with the SFC’s licensing model can expect to have their applications approved. Companies not meeting requirements risk losing licensing eligibility. This follows the release of SFC's roadmap with plans to advance crypto platform regulations, emphasize real world asset tokenization, and explore blockchain technologies.

Response to JPEX Scandal

Following the scandal involving the JPEX exchange, with over 2,500 Hong Kong residents alleging fraud, the SFC has strengthened crypto regulation and oversight of unlicensed firms. The SFC has also set up a task force with the police to address illicit crypto activities and has updated its policies on crypto sales and requirements.

Strengthening regulation in Hong Kong's crypto sector aims to protect investors and integrate platforms within legal frameworks. The SFC's annual plan is expected to expedite this process.