Hong Kong to expand licensing for virtual currency exchanges

The Hong Kong Securities and Futures Commission (SFC) plans to issue licenses to some of the 11 cryptocurrency companies awaiting registration by the end of the year.
According to overseas media such as Cointelegraph on the 7th (local time), Hong Kong's financial regulator, the SFC, will suspend operations of cryptocurrencies operating in Hong Kong by the end of the year.
The SFC said it plans to issue more licenses to cryptocurrency exchanges and digital asset companies.
"We expect progress to be made in issuing licenses to the 11 virtual currency exchange platforms (VATPs) on the regulator's potential licensing list," Leung said.
Leung added that licenses will be issued in batches, which will make it easier for crypto exchanges to comply with regulations.
A total of 16 companies are awaiting decisions on their VATP applications, of which 11 are already considered authorized, but the SFC has recommended against doing business with these companies.
The SFC said it has completed its first on-site review of cryptocurrency companies and that all VATPs that comply with the licensing model can expect their applications to be approved.
"Companies that do not meet the SFC's requirements will not be eligible for a licence," Mr Leung said.
Leung's remarks were made on October 6 when the SFC released its roadmap for 2024 to 2026.
The roadmap includes plans to strengthen regulation of cryptocurrency platforms, promote real asset tokenization (RWA), and delve deeper into blockchain technology.