Hong Kong’s Securities and Futures Commission has issued a notice requiring all crypto trading platforms to apply for licenses by February 29 or face closure by May 31. This move is aimed at protecting investors and ensuring the legitimacy of virtual asset trading platforms.

The SFC advises investors to verify the regulatory status of the platforms they use against the published lists of licensed and applicant virtual asset trading platforms.

Failure to submit a license application by the deadline will result in the platform being required to cease operations in Hong Kong. The SFC’s advisory also urges investors using unlicensed platforms to take immediate action, including closing their accounts, to avoid potential risks.

Since the implementation of Hong Kong’s crypto licensing regime in June 2023, licenses have been granted to platforms like HashKey and OSL, allowing them to offer retail trading services. The SFC is currently evaluating applications from 14 other crypto firms, including well-known names such as OKX and Bybit. HKVAEX, an entity associated with Binance, has also submitted a license application.

This regulatory oversight is part of the government’s efforts to establish a comprehensive framework for regulating the crypto market. Christopher Hui, Secretary for Financial Services and the Treasury, has announced upcoming consultations on a regulatory framework for over-the-counter crypto trading to address emerging risks and ensure investor protection.

For more news and updates on cryptocurrency regulations, visit Global Crypto News.

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