Hong Kong’s Securities and Futures Commission (SFC) has issued a directive to all crypto trading platforms operating within its jurisdiction, requiring them to submit a license application by February 29 or face closure by May 31.
Navigating the New Crypto Regulatory Landscape
- Investors are advised to only engage with platforms listed as licensed virtual asset trading platforms or as applicants for the license.
- Those trading on unlisted platforms should take early action, such as closing their accounts, to avoid potential disruptions.
Hong Kong’s Broader Regulatory Strategy
- The stringent licensing process is part of Hong Kong’s broader strategy to regulate the crypto market in its region.
- Plans to introduce a new regulatory framework targeting over-the-counter (OTC) crypto trading platforms are underway.
- Hong Kong remains committed to fostering a crypto-friendly environment and aspires to become a leading digital asset hub in the Asia-Pacific region.
Spot ETFs on the Horizon
- Harvest Fund Hong Kong has applied for a Bitcoin spot ETF, marking a milestone in the region’s crypto journey.
- The SFC is considering accelerating the authorization process for spot ETF, aiming to list it on the Hong Kong Stock Exchange soon after the Chinese New Year celebrations.