Hong Kong's Securities and Futures Commission (SFC) has introduced new regulations for virtual asset trading platforms (VATPs), which became effective on June 1. Under these regulations, VATPs operating in or marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term to Hong Kong investors must be licensed by the SFC or qualify as "deemed-to-be-licensed VATP applicants." The aim of these regulations is to enhance investor protection and market integrity.

Implementing Crypto Regulations

The new rules require comprehensive applications that include management experience, industry qualifications, and external attestations. They also set specific criteria for token admission, anti-money laundering requirements, and prohibitions on proprietary trading. Platforms must also have adequate insurance or compensation arrangements to cover custodial risks.

As of the June 1 deadline, only two VATPs have been licensed by the SFC: OSL Digital Securities Ltd. and Hash Blockchain Ltd. The SFC has published a list of 17 pending applicants for VATP licenses.

The regulator emphasizes that these applicants are not yet licensed and may not meet regulatory standards. Investors are advised to verify licenses and exercise caution with unlicensed or provisionally licensed platforms, which could be shut down if not approved.

🇭🇰 Hong Kong Reveals 17 Crypto Trading Platform Applicants as New Regulations Take Effect

Hong Kong’s Securities and Futures Commission (SFC) has published a list of two licensed crypto trading platforms and 17 pending applicants under the new regulations that went into effect…

— SmartViewAI.Com (@smartviewai) June 3, 2024

Pending Crypto License Applications

The pending applicants for VATP licenses include Hong Kong BGE Ltd., Hong Kong Digital Asset EX Ltd., and Hong Kong Virtual Asset Exchange Ltd. Other companies on the list are Victory Fintech Company Ltd., Panthertrade Ltd., and Accumulus GBA Technology Co. Ltd.

Additional applicants are DFX Labs Company Ltd., Newbx Limited, and Thousand Whales Technology Ltd. Highblock Ltd., YAX Ltd., and Bullish Ltd. are also seeking licenses.

Further, Foris DAX HK Ltd., Whalefin Markets Ltd., and Flying Hippo Technologies Ltd. are on the list. Finally, hi5 Ltd. and Bitcoin World Technology Ltd. round out the group of pending applicants.

The SFC stresses that operating a VATP without a license is a criminal offense. It has committed to taking appropriate actions against any legal breaches. In response to the new regulatory framework, several crypto exchanges, including OKX and Gate.hk, have announced that they will cease operations in Hong Kong.