Hong Kong Crypto Trading Platform Edging Closer to Full Operational License
DFX Labs, a cryptocurrency trading platform based in Hong Kong, is advancing towards obtaining a comprehensive operational license within the region following its recent approval under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).
According to public records maintained by the Securities and Futures Commission (SFC) of Hong Kong, DFX Labs has been deemed to hold a license for providing virtual asset services.
However, despite the acquisition of an active AMLO license, the platform is still awaiting approval to offer cryptocurrency trading services. The records clearly state that while DFX Labs is recognized for providing virtual asset services, it has not yet been formally granted a license by the SFC under the AMLO, with the application status pending determination.
Timeline of DFX Labs' License Application in Hong Kong
DFX Labs initiated the application process for the Hong Kong crypto license on December 27, 2023, with Simon Au Yeung, the company's Chief Operating Officer, serving as the main applicant. The acknowledgment of the platform being licensed was made on June 1.
Moreover, the official website of DFX Labs currently remains an unlicensed virtual asset platform and is inaccessible to residents of Hong Kong.
Hong Kong's Initiative to Attract Global Startup Ventures
Recent efforts by three Hong Kong government entities - The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) - saw them collaborating to host an event in Toronto aimed at promoting Hong Kong's offshore ready-to-move technology hub to Canadian crypto and Web3 startups during a conference in Toronto.
At the event, Emily Mo, Director of Toronto ETO, highlighted the startup-friendly regulations in Hong Kong, emphasizing advantages such as lower taxes compared to Canada and Hong Kong's readiness to engage with pre-commercial specialist technology firms. She further mentioned the creative environment for Web3/virtual asset advancements, with sectors like Fintech, health technology, green technology, and property technology gaining traction in Hong Kong and across Asia.
In a notable development, all crypto exchanges operating without a license in Hong Kong were compelled to cease operations in May. Various exchanges that had previously applied for operational licenses decided to retract their applications, including prominent players like OKX, Huobi HK, and Bybit, among others.
