Hong Kong’s Securities and Futures Commission has set a deadline of February 29 for crypto trading platforms to apply for licenses or face closure by May 31.
In a notice released on February 5, the objective is to protect investors by advising them to check the regulatory status of the platforms they use against the SFC’s official lists of licensed and applicant virtual asset trading platforms.
The SFC’s announcement urges investors using unlicensed platforms to take immediate action, such as closing their accounts, to mitigate potential risks. This directive comes after the launch of Hong Kong’s crypto licensing system in June 2023, which has already granted licenses to two platforms, HashKey and OSL, allowing them to provide retail trading services.
The SFC is currently reviewing applications from 14 crypto companies, including well-known names like OKX and Bybit. HKVAEX, linked to Binance, has also submitted an application for a license according to the latest reports.
This regulatory oversight is part of the government’s broader plan to regulate the crypto market, as highlighted by Christopher Hui, Secretary for Financial Services and the Treasury, who mentioned forthcoming discussions on a regulatory framework for over-the-counter crypto trading in light of increasing risks.
For more information, the SFC is focused on enhancing transparency and safeguarding investors in tokenized securities activities.
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