Hong Kong Crypto Exchanges Struggle with Licensing Issues

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. Licensing Challenges for Hong Kong Exchanges
  2. Violations and Risks
  3. Measures and Consequences


    4. Crypto exchanges in Hong Kong are facing challenges in securing full licenses as regulators tighten controls and address multiple violations.

    Licensing Challenges for Hong Kong Exchanges

    According to a Bloomberg report, crypto exchanges in Hong Kong are struggling to secure full licenses. The Hong Kong Securities and Futures Commission (SFC) identified unsatisfactory practices at 11 'deemed-to-be-licensed' exchanges, raising doubts about their ability to meet licensing requirements.

    Violations and Risks

    Inspections revealed that some exchanges were overly reliant on a small number of executives for client asset management, while others did not adequately guard against cybercrime risks. The exchanges under scrutiny include major players such as Crypto.com and Bullish as well as local trading platforms like HKbitEX and PantherTrade.

    Unsatisfactory practices in managing crypto assets have been found.Hong Kong Securities and Futures Commission (SFC)

    Measures and Consequences

    Currently, only two platforms — OSL and HashKey — hold full licenses in Hong Kong. Other platforms face increased scrutiny and requirements to protect client assets and follow robust 'know your client' protocols. This heightened oversight follows a scandal involving the unlicensed platform JPEX, accused of defrauding over $200 million. Due to regulatory requirements, 12 license applications have been withdrawn, including those from Bybit, Huobi HK, and OKX.

    Strict measures are aimed at ensuring complete security of client assets.SFC spokesperson

    The licensing challenges faced by crypto exchanges in Hong Kong highlight the importance of stringent regulation and compliance with security standards. Regulatory authorities continue to work on improving conditions for the safe operation of the crypto industry in the region.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Elon Musk Proposes Public Shares Plan Amid AI Discussions

Elon Musk proposed giving shares from Anthropic's Public Benefit Fund directly to the public to support nonprofits and address AI's impact on workers.

user avatarLucas Weissmann

SpaceX Falcon 9 Launch Scheduled for October 19

SpaceX is preparing for a Falcon 9 rocket launch from Cape Canaveral on October 19, 2026, at 6:30 AM ET, which may create a jellyfish effect. Weather conditions currently pose a threat with only a 55% chance of favorable conditions.

user avatarRajesh Kumar

Cardano's Stablecoin Market Surpasses 702 Million

As of October 18, Cardano's stablecoin market has reached a notable milestone, with the total supply of dollar-pegged tokens hitting approximately 702 million.

user avatarFilippo Romano

Aptos Reports Token Burn and Staking Emissions

Aptos has burned approximately 174,570 APT in the last 30 days while issuing around 15 million APT through staking.

user avatarEmily Carter

Cross River Bank Integrates Ripple's RLUSD Stablecoin for Enhanced Payment Solutions

Cross River Bank integrates Ripple's RLUSD stablecoin to enhance payment solutions for fintech customers.

user avatarTomas Novak

Stocklinked Tokens in DeFi Surge to $2.624 Billion

Stocklinked tokens in decentralized finance reached approximately $2.624 billion by the end of September 2026, marking an 18-fold increase from the beginning of the year.

user avatarKaterina Papadopoulou

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.