This regulatory crackdown demonstrates the SFC’s dedication to promoting a safe and transparent atmosphere for virtual asset trading.
Cryptocurrency exchanges operating in Hong Kong must either obtain an operational license from the Securities and Futures Commission (SFC) or cease their activities immediately. The SFC has set a deadline of February 29 for license applications, with a three-month window for compliance or cessation of operations to mitigate risks for investors.
Over this period, over 22 cryptocurrency exchanges sought licenses to operate in the region. Nevertheless, a significant number of these exchanges opted to retract their applications shortly before the deadline.
During May, six cryptocurrency exchanges, including major international platforms like OKX and Huobi HK, exited the Hong Kong market unexpectedly.
Although many exchanges didn’t disclose reasons for their decisions, Gate.HK, based in Hong Kong, mentioned the necessity for a significant revamp of its trading platform to meet regulatory standards in Hong Kong.
During May, six cryptocurrency exchanges, including major international platforms like OKX and Huobi HK, exited the Hong Kong market unexpectedly.
Although many exchanges didn’t disclose reasons for their decisions, Gate.HK, based in Hong Kong, mentioned the necessity for a significant revamp of its trading platform to meet regulatory standards in Hong Kong.
By May 31, 18 cryptocurrency exchanges have sought an operational license in Hong Kong. The Securities and Futures Commission (SFC) plans to disclose the approved exchanges by June 1. Currently, HashKey and OSL Exchange are the sole authorized cryptocurrency exchanges in Hong Kong.
It’s crucial to understand that not all exchanges may obtain a license and could face closure per the SFC’s determination. Investors are urged by the SFC to refer to the official list of approved exchanges to mitigate potential risks linked with cryptocurrency trading.
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