CDS Crypto News Crypto Exchanges in Hong Kong Must Submit Licensing Applications by Deadline or Face Shutdown
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Crypto Exchanges in Hong Kong Must Submit Licensing Applications by Deadline or Face Shutdown

Hong Kong has granted licenses to just two cryptocurrency trading platforms within its jurisdiction.

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Crypto Exchanges In Hong Kong Must Submit Licensing Applications By Deadline Or Face Shutdown

Crypto News- Hong Kong’s Securities and Futures Commission (SFC) has issued a notice to unregistered Virtual Asset Trading Platforms (VATPs) in the region, instructing them to submit licensing applications by February 29 or cease operations by May 31, according to an announcement on February 5.

Crypto Exchanges in Hong Kong Must Submit Licensing Applications by Deadline or Face Shutdown

In the notice, the financial regulatory authority emphasized the importance of compliance with the deadline for cryptocurrency trading firms. Investors were strongly advised to interact with licensed platforms in the region. The SFC provided a mechanism for crypto traders to verify the regulatory status of platforms by March 1 through its “List of licensed virtual asset trading platforms” or the “List of virtual asset trading platform applicants.”

The SFC stated, “Investors should check the regulatory status of a VATP from time to time and in any event on March 1, 2024.” It reiterated that VATPs in Hong Kong failing to submit license applications by February 29 must shut down their businesses by May 31, following the transitional arrangements under the SFC’s regulatory regime for VATPs.

Hong Kong Cryptocurrency Platforms Face Regulatory Deadline: Apply by February 29 or Shutdown by May 31

Hong Kong introduced its cryptocurrency licensing framework for virtual asset trading platforms last year, allowing licensed exchanges to offer retail trading services. Notably, two platforms, HashKey and OSL, have already received licenses in the city-state.

The SFC diligently reviewed applications from 14 crypto entities, including OKX, Bybit, and HKVAEX. Importantly, the regulatory authority cautioned investors that the application process does not guarantee approval, emphasizing the need for prudence when engaging with these platforms.

These regulatory initiatives underscore Hong Kong’s commitment to cultivating a supportive environment for the crypto industry. Recently, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) introduced a comprehensive regulatory framework for stablecoins. Additionally, authorities have signaled readiness for spot Bitcoin exchange-traded fund (ETF) products, further solidifying Hong Kong’s position in the evolving crypto landscape.

Crypto Exchanges In Hong Kong Must Submit Licensing Applications By Deadline Or Face Shutdown
Written by
Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

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