Hong Kong Grants Third Crypto Trading Platform License to HKVAX

SFC Chief Executive Julia Leung confirmed the approval during an interview with local media outlet HK01. This license follows the earlier approvals of OSL and HashKey

Hong Kong’s Securities and Futures Commission (SFC) has granted a third crypto trading platform license to HKVAX, marking a new milestone in the city’s virtual asset regulation efforts.

SFC Chief Executive Julia Leung confirmed the approval during an interview with local media outlet HK01. This license follows the earlier approvals of OSL and HashKey, which are already operating in the region.

HKVAX’s services will include over-the-counter trading, exchange operations, and custody solutions. Anthony Ng, co-founder and CEO of HKVAX, commented on the development, stating, “This approval affirms HKVAX’s position and demonstrates Hong Kong’s commitment to being at the forefront of the virtual asset industry.”

More Hong Kong Licenses Expected by Year-End

In addition to HKVAX, 11 other platforms are under consideration by the SFC, with more licenses expected to be issued by the end of the year. Leung noted that these platforms are on the SFC’s “deemed-to-be-licensed” list, indicating they have submitted their applications under the new regulatory regime. The SFC has already conducted initial onsite inspections of these applicants.

The SFC has required these firms to make necessary adjustments to meet compliance standards. “We have conducted inspections and asked the firms to address issues that do not meet our regulatory expectations,” said Leung. These inspections are part of the SFC’s ongoing efforts to ensure all platforms meet its regulatory criteria before final approvals are granted.

Despite the progress in licensing, several crypto exchanges have withdrawn their applications under the new regulatory framework. HKVAEX, suspected of having ties to Binance, withdrew its application on March 28, 2024. Other firms, including IBTCEX, Huobi HK, and Bybit, followed suit, with withdrawals taking place in May 2024.

Meanwhile, Bullish and Crypto.com are among those still awaiting approval. However, the SFC has warned that firms failing to address the deficiencies identified during inspections could lose their “deemed-to-be-licensed” status. Leung emphasized that compliance is critical for any platform seeking to operate legally under Hong Kong’s new framework.

These developments come after Hong Kong introduced a licensing framework for crypto trading platforms in June 2023. The framework aims to allow these firms to serve retail investors in a regulated environment.