The Hong Kong Securities Futures Commission (SFC) is set to release guidelines for cryptocurrency exchange licensing in May. The move is expected to provide support to crypto trading platforms, which will be able to offer trading services to retail investors starting June 1. The guidelines were announced by the SFC's CEO, Julia Leung, during a conference on Thursday, April 27.
Leung said that the consultation process on the licensing regime received more than 150 responses from interested parties, with anti-money laundering and know-your-customer regulatory requirements among the key considerations.
While confirmation is awaited for most prospective Virtual Asset Service Provider (VASP) licensees, some trading platforms have already started offering crypto-related services under SFC supervision. OSL and Hashkey Group are among the few trading platforms to have already received licenses from the SFC.
Although Hong Kong aims to establish itself as a significant hub for cryptocurrencies, not all trading platforms have decided to stay for the long term. Bitget, a digital currency exchange holding assets worth $1.4 trillion, declared on April 24 that it will discontinue providing services to its Hong Kong clients after June 1, when the Hong Kong VASP regulatory framework takes effect.
Overall, the move by the SFC is seen as a positive step toward regulating the cryptocurrency industry in Hong Kong. It is hoped that these guidelines will help to attract more reputable trading platforms and investors, thereby increasing the legitimacy and stability of the crypto market in the region.
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