Hong Kong units deadline for crypto change licensing functions or face shutdown

Hong Kong’s Securities and Futures Fee (SFC) informed unregistered Digital Asset Buying and selling Platforms (VATPs) inside its area to submit their licensing functions by Feb. 29 or shut their companies by Might 31, based on a Feb. 5 discover.

The monetary regulatory authority reaffirmed this deadline for cryptocurrency buying and selling corporations whereas advising traders to interact with licensed platforms within the area. As outlined by the SFC, crypto merchants can confirm the regulatory standing of those platforms by March 1 through its “Checklist of licensed digital asset buying and selling platforms” or on the “Checklist of digital asset buying and selling platform candidates.”

“Traders ought to test the regulatory standing of a VATP now and again and in any occasion on 1 March 2024. It is because VATPs working in Hong Kong which haven’t submitted their licence functions to the SFC by 29 February 2024 MUST shut down their companies in Hong Kong by 31 Might 2024 pursuant to the transitional preparations underneath the SFC’s regulatory regime for VATPs,” SFC added.

Final yr, Hong Kong initiated its cryptocurrency licensing framework for digital asset buying and selling platforms, paving the way in which for licensed exchanges to offer retail buying and selling providers. Notably, the city-state has licensed two platforms, together with HashKey and OSL.

In the meantime, the regulatory authority diligently scrutinized functions from 14 crypto entities, together with OKX, Bybit, and HKVAEX. The SFC emphasised that the applying course of doesn’t assure approval, cautioning traders to train prudence when participating with these platforms.

These initiatives mirror Hong Kong’s dedication to fostering a pro-crypto setting. Just lately, the Monetary Companies and the Treasury Bureau (FSTB) and the Hong Kong Financial Authority (HKMA) unveiled a complete regulatory framework for stablecoins. Moreover, authorities have expressed preparedness for spot Bitcoin exchange-traded fund (ETF) merchandise, additional solidifying Hong Kong’s stance within the evolving crypto panorama.

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