Hong Kong raises its profile on the crypto stage
Digital-asset exchanges in the region may increase from three to 11 by the new year
Hong Kong is looking to license more digital-asset exchanges by the end of this year after completing a five-month inspection period, the chief of securities and future commission said at a conference.
A finalized list of the exchanges that passed a provisional permit to be fully licensed will be published by year-end, said Eric Yip, executive director for intermediaries at the Securities and Futures Commission, in a speech at the annual Fintech Week event on Monday.
“In only five months, we have completed all the on-site inspections and provided feedback to the applicants. During the inspection, the SFC has been able to learn about these firms’ state of compliance first-hand, and directly engage with their personnel and, more importantly, their ultimate controllers to facilitate their understanding of our expectations,” Yip said.
Currently, only three exchanges hold full licenses, while 11 others are considered “deemed-to-be-licensed”. Yip explained that once these digital-asset exchanges meet the SFC's requirements, they may obtain licenses for limited operations.
He added that a third-party review is required before these restrictions can be lifted."Most applicants and their management have taken our recommendations seriously, committing resources to address issues and approach business development with a regulated, long-term perspective," Yip said.
Hong Kong initiated its digital asset ambitions in 2022 to rejuvenate its global appeal after political tensions affected its reputation.
By early 2025, the SFC is expected to establish a consultative group with licensed exchanges to strengthen collaboration, Yip added. The regulator is also developing a framework to oversee crypto OTC trading desks and custodians.
In separate news on Monday, Hong Kong Exchanges and Clearing, which is responsible for the securities market in the region, revealed plans for a virtual asset index series. Launching next month, it will provide a clear benchmark for Bitcoin and Ether prices, helping to fix price differences across global exchanges.
