Enhanced Oversight and Licensing Standards
The licensing regime by the SFC started last June 2023, purposed to protect investors and provide a transparent platform for trading. Applications must go through high standards for compliance: risk management, operational integrity, and protection for users.
A two-step approval process is in place. First, certified public accountants verify the platforms’ internal systems and controls. Second, the SFC conducts its review, lifting restrictions once full compliance is confirmed.
Future Plans and Global Ambitions
The SFC plans to launch a consultative panel for licensed platforms in early 2025. This panel will encourage collaboration between regulators and industry leaders to address challenges and adapt to evolving technology.
This itself represents a unique positioning of Hong Kong as a global crypto hub, with its strong regulatory framework. The SFC continually updates the list of licensed and unregulated platforms to help investors be more transparent in their investments.
These, in turn, underscore Hong Kong’s ambition to be at the forefront of the digital asset space, rivaling the likes of Singapore and the UAE. The latest approvals further cement its commitment toward building a safe and trusted crypto trading ecosystem.
