Hong Kong Securities and Futures Commission Grants Conditional Licenses to Four Virtual Asset Trading Platforms

The Hong Kong Securities and Futures Commission (SFC) has granted conditional licenses to four virtual asset trading platforms, including Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology. These platforms must meet specific regulatory conditions before fully operating, according to the SFC.

Regulatory Conditions and Security Assessments

The licenses follow the SFC’s risk-based inspections, introduced in June, which are designed to evaluate compliance with Hong Kong’s virtual asset regulations. To proceed, the licensed exchanges must complete third-party vulnerability assessments and penetration tests to identify and address potential security weaknesses. This ensures the platforms can securely handle digital asset trading.

The SFC will oversee the process and assess whether the platforms have resolved issues identified during inspections. These measures aim to protect investors while fostering growth in the crypto sector.

Overview of Licensed Platforms

The four newly licensed platforms bring the total number of licensed virtual asset trading platforms in Hong Kong to 7. The licensed exchanges are:

  • Accumulus GBA Technology
  • DFX Labs
  • Hong Kong Digital Asset EX
  • Thousand Whales Technology

Proactive Engagement and Regulatory Guidance

According to Dr. Eric Yip, the SFC’s Executive Director of Intermediaries, the regulator has worked closely with the management of these platforms to clarify expectations and speed up the licensing process. This proactive engagement will continue into the second phase of assessments, during which external assessors will evaluate the platforms under SFC supervision.

Upon successful completion of this phase and satisfaction of all conditions, the exchanges will be able to expand their business operations. The SFC has also issued a circular outlining the roadmap for the licensing process, aiming to streamline the compliance journey for virtual asset trading platforms while reinforcing regulatory standards.

Importance of Licenses in Crypto Regulation

Licenses like these ensure exchanges operate legally and securely. Licensed platforms must implement measures to:

  • Safeguard user funds
  • Prevent fraud
  • Deter market manipulation

By meeting these regulatory conditions, virtual asset trading platforms can provide a secure environment for investors and contribute to the growth of the cryptocurrency market.

For more news on the cryptocurrency market and updates on regulatory developments, visit Global Crypto News.

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