Cryptocurrency exchanges should soon be able to get familiar with Hong Kong's new licensing guidelines.
Hong Kong's Securities Futures Commission (SFC), the independent statutory body regulating the securities and futures markets in the administrative region, is reportedly preparing to roll out guidelines for cryptocurrency exchange licensing in May.
According to the news portal Bloomberg's April 27th report, the news was revealed by SFC Chief Executive Julia Leung.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
How Does Cryptocurrency Work? (Explained with Animation)
In particular, during an undisclosed event, Julia Leung commented on the upcoming guidelines, which aim to support crypto trading platforms that will begin offering services to retail investors starting June 1st.
According to Bloomberg, Leung mentioned that the consultation process on the licensing regime garnered over 150 responses from interested parties, with the key suggestions being the incorporation of Anti-Money Laundering (AML) and Know Your Client (KYC) regulatory requirements.
While many potential Virtual Asset Service Provider (VASP) licensees are still awaiting confirmation, a few trading platforms have already started providing crypto services to investors in Hong Kong. Reuters reported that OSL and Hashkey Group are among the companies that have secured licenses from the SFC.
It is worth noting that recently, companies like Huobi Global, Gate Group, and Independent Reserve revealed plans to work on receiving SFC licenses and start operating in Hong Kong.
However, while some companies are excited to spread their wings in Hong Kong, others are abandoning the administrative region. On April 24th, crypto exchange Bitget revealed that starting June 1st, it will halt all operations in Hong Kong.
The upcoming licensing guidelines from Hong Kong's SFC demonstrate the regulator's commitment to providing a clear and secure environment for cryptocurrency trading, which is essential for the continued growth of the industry.
