The Securities and Futures Commission (SFC) of Hong Kong has announced the issuance of operational licenses for four virtual asset trading platforms in a statement released on Wednesday (18 Dec 2024). This approval highlights the country's plans to position herself as the global centre for digital asset trading, leveraging a fast-tracked regulatory framework.

From the details the SFC shared in the statement, we know that the licensed platforms include Thousand Whales Technology (BVI) Ltd, Hong Kong Digital Asset EX Limited, DFX Labs Company Ltd, and The Accumulus GBA Technology Ltd. 

With these new approvals, the total number of licensed crypto trading platforms approved by the SFC now adds up to seven. The previously licensed trading platforms were Hong Kong Virtual Asset Exchange (HKVAX), OSL, and HashKey Group. 

According to the SFC, the licensing process for the recently certified firms involved rigorous on-site inspections, following the guidelines introduced in June. The regulatory body also noted that the firms were in complete compliance, which allowed them to secure their restricted licenses.

Furthermore, it's important to note that the licenses that were issued by the SFC in this case initially come with certain restrictions. However, the regulator noted that the limitations will be lifted once the platforms successfully complete a second-phase assessment.

What we do know about this second phase assessment is that it would be conducted by external evaluators. Also, the SFC claims that the assessment is designed to ensure that the platforms comply with the global regulatory standards for full operational capability.

Eric Yip, the SFC’s Executive Director of Intermediaries, noted that the licensing process involved close collaboration with the leadership teams of the VATPs. He emphasized the Commission’s commitment to both protecting investors and promoting growth within Hong Kong’s virtual asset ecosystem.

In an interview, Yip said:

We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.

Observing the market's reaction to the news, general sentiment on social media has been somewhat mixed. 

For instance, popular crypto analyst Peter Pru shared his optimism about the news in his reply to a post on X that said, “These new licenses will only fuel innovation and growth, cementing Asia as a global crypto hub.”

 However, not everyone is so pumped about the news. Expert analyst with the alias Peter Pru X commented on X, saying:

I’m not buying the hype. This move could legitimize the market, but it also opens the door for more oversight.

On the other hand, comments like Tesla Roshi’s show that there are people who are unbothered about the SFC’s action. His X comment reads, "Immaterial... there was never anything preventing HK citizens from trading crypto from day one.”

But Hong Kong isn’t the only country going big on crypto; the United States and even half of Europe are now warming up to the industry. We reported yesterday that 2025 could see a surge in crypto ETFs, according to Bloomberg ETF analysts Eric Balchunas and James Seyffart.

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