Hong Kong sets deadline for crypto exchange licensing applications or face shutdown

Hong Kong’s Securities and Futures Commission (SFC) told unregistered Digital Asset Procuring and selling Platforms (VATPs) within its keep to post their licensing purposes by Feb. 29 or shut their companies by Would possibly maybe well fair 31, per a Feb. 5 contemplate.

The monetary regulatory authority reaffirmed this deadline for cryptocurrency shopping and selling companies whereas advising investors to engage with licensed platforms in the keep. As outlined by the SFC, crypto merchants can review the regulatory standing of these platforms by March 1 by technique of its “List of licensed virtual asset shopping and selling platforms” or on the “List of virtual asset shopping and selling platform candidates.”

“Investors can possess to unexcited check the regulatory house of a VATP once rapidly and in any tournament on 1 March 2024. It is because VATPs working in Hong Kong which possess no longer submitted their licence purposes to the SFC by 29 February 2024 MUST shut down their companies in Hong Kong by 31 Would possibly maybe well fair 2024 pursuant to the transitional arrangements beneath the SFC’s regulatory regime for VATPs,” SFC added.

Final One year, Hong Kong initiated its cryptocurrency licensing framework for virtual asset shopping and selling platforms, paving the manner for licensed exchanges to present retail shopping and selling providers. Severely, the city-dispute has licensed two platforms, in conjunction with HashKey and OSL.

Meanwhile, the regulatory authority diligently scrutinized purposes from 14 crypto entities, in conjunction with OKX, Bybit, and HKVAEX. The SFC emphasised that the applying course of would no longer sing approval, cautioning investors to insist prudence when taking part with these platforms.

These initiatives contemplate Hong Kong’s commitment to fostering a pro-crypto environment. Just no longer too lengthy ago, the Monetary Companies and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) unveiled a comprehensive regulatory framework for stablecoins. Furthermore, authorities possess expressed preparedness for keep Bitcoin replace-traded fund (ETF) products, further solidifying Hong Kong’s stance in the evolving crypto panorama.