Hong Kong’s Securities and Futures Commission (SFC) has issued a clear ultimatum to all virtual asset trading platforms (VATPs) within its jurisdiction. By February 29, all crypto exchanges in Hong Kong must either secure or apply for a VATP license, marking a pivotal move towards establishing a regulated and secure environment for virtual asset investors.
See: Crypto exchanges in Hong Kong
The commission’s directive underscores the urgency for trading through licensed exchanges, emphasizing the need for investors to verify the regulatory status of their platforms. OSL and HashKey stand as the only licensed exchanges currently operating in Hong Kong, signaling a shift towards heightened regulatory compliance within the industry.
Furthermore, investors utilizing unlicensed platforms are urged to transfer their holdings to licensed entities by May 31 to avoid potential account closures. Amidst these regulatory changes, OSL and HashKey have emerged as pack leaders, reaffirming their commitment to security and achieving significant milestones, including HashKey’s recent unicorn status with a valuation exceeding $1.2 billion.
As Hong Kong positions itself as a digital asset trading hub, these developments underscore a balanced approach towards fostering innovation while ensuring robust investor protection. Cryptocurrency investors and traders in Hong Kong are urged to move their trading activity to licensed exchanges, or use overseas exchanges which are supporting this region.
Needless to say, the appeal of using crypto exchanges without know-your-customer policies is going to be even greater, and Hong Kong traders will increasingly start using the same methods to bypass restrictions as many Chinese traders.
