In a new update, eleven out of over twenty cryptocurrency exchanges that underwent Hong Kong's Securities and Financial Commission's (SFC) rigorous Virtual Asset Trading Platform (VATP) licensing screening modalities are close to receiving operational licenses.
SFC's official website captured the recent development, in which the regulatory body declared eleven trading platforms "deemed to be licensed," implying that the highlighted exchanges are on the verge of obtaining full licensing.
Background Story Summary
The crypto landscape in the Hong Kong region has witnessed several notable changes these past few months following the new regulations specified by the SFC, which included a mandatory new SFC-issued license for crypto exchanges to continue marketing operations in the region or shut down operations around the Hong Kong digital market axis.
Consequently, exchanges, especially those hoping to continue their trading operations in Hong Kong have rallied to obtain the eligibility criteria carved out by the regulatory body.
11 Exchanges Near Return, While Only 2 Remain Fully Licensed
Current SFC updates reveal that Bullish and Crypto.com are among the 11 crypto exchange platforms deemed close to receiving operational licensing. Other trading platforms that made the list included KbibtEX, PantherTrade, DFX Labs, WhaleFin, xWhale, YAX, Bixincom, Matrixport HK, and Accumulus.
Citing what sounded like a warning, the SFC stated that being deemed to be licensed does not guarantee approval, and as such, investing in exchanges in that category could be classified as risky.
Meanwhile, the only fully licensed crypto exchanges in Hong Kong are OSL Group and HashKey, implying that once the above eleven trading platforms complete their licensing procedures, there will be about thirteen exchanges operating in Hong Kong.
Some Exchanges Did Not Apply For Licensing
Interesting to note is that a good number of crypto exchanges did not apply for licensing from the SFC to continue operations in Hong Kong - they include Binance, Kraken, and Coinbase. On the other hand, some exchanges like Gate.io and OKX withdrew their license applications, incurring a potentially higher difficulty in re-entering the market.
How events unfold remains fluid. Nevertheless, it underscores the rapidly changing crypto regulatory landscape, which has forced many trading platforms to see compliance as a priority.
