In an unexpected event turnout, the Hong Kong Securities and Futures Commission (SFC) accepted a late crypto license application from its regional-based exchange. For context, Hong Kong Digital Asset Xchange (HKDAEx) recently joined the list of trading platforms hoping to obtain operational licenses in the Chinese region.
According to the SFC official website, while most exchanges applied for the operational permit before an earlier announced May 31 deadline, HKDAEX had other plans. Interestingly, it delayed its application until recently, specifically on August 27. Ordinarily, HKDAEX filing could pass satisfactorily as void, considering that it exceeded the initial deadline by about three months. However, the opposite has happened, eliciting market participants' reactions.
Accepting the late license application signifies that HKDAEX will join the League of Exchanges, waiting for approval from the SFC. These trading platforms include Bullish, PantherTrade, Crypto.com, DFX Labs, Bixin.com, Accumulus, etc.
SFC May Revert the Late Crypto License Application
Per the SFC, HKDAEX submission might face a potential reversal. The submission rejection might stem from the failure to meet the standards relating to its completeness and fundamental issues.
Interestingly, several platform applications were withdrawn, according to statistics on the SFC official website. Some saw their filing rejected since last year, while some happened this year. BitHarbour (Hong Kong) Limited, Meex Digital Securities Limited, HBGL Hong Kong Limited, BX SERVICES LIMITED, etc all saw their licenses withdrawn in 2024.
Overview of Hong Kong’s Regulatory Landscape
Like most countries and regions, the crypto regulatory landscape changes as authorities seek an ideal approach. For Hong Kong, exchanges operating within the region must obtain an operational permit.
Starting from June 1, 2024, the law took effect and has remained relevant till this moment. Considering the lateness associated with HKDAEX permit submission, chances abound that the outcome might be unfavorable. Hence, it could result in setbacks for the exchange.
