4 more virtual asset trading platforms receive licenses in Hong Kong

The Hong Kong Securities and Futures Commission (SFC) has granted licenses to four additional virtual asset trading platforms (VATPs), increasing the number of licensed platforms in the region.

On December 18, Accumulus GBA Technology (Hongkong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI) were approved, joining previously licensed platforms such as HashKey, OSL, and HKVAX.

The licensing process is designed to ensure that platforms comply with strict regulatory standards.

The newly approved exchanges underwent on-site inspections and responded to feedback from the SFC.

The inspections focused on areas such as safeguarding client assets, Know Your Customer (KYC) processes, and cybersecurity.

Eric Yip, SFC executive director of intermediaries, explained that the agency has been working closely with VATPs’ senior management to help meet regulatory expectations and accelerate the licensing process.

“We have been proactively engaging with VATPs’ senior management and ultimate controllers which helps drive home our expected regulatory standards and expedite our licensing process for VATPs,” Yip said.

Once approved, the exchanges will operate in a restricted scope.

They must perform vulnerability assessments and penetration tests through an independent third party, with satisfactory results, before the restrictions are lifted.

The SFC will oversee this process.

The four new VATPs are licensed to deal with securities, provide automated trading services, and operate a VATP.

There are now eleven VATPs on the applicants list, with seven of them holding a “deemed to be licensed” status.

This means they conform to Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.

SFC CEO Julia Leung stated that the agency plans to continue granting licenses in batches as part of its roadmap to promote Blockchain technology and tokenisation.

Currently, only Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), Avalanche (CRYPTO:AVAX), and Chainlink (CRYPTO:LINK) are available for trading in Hong Kong.