2024

Silk Road

Propel

JPEX

The full regulatory framework for digital assets in Hong Kong will be completed by the Securities and Futures Commission (SFC) as soon as next year, says CEO Liang Fengyi. She also said that 11 more <a href="https://www.hk01.com/%E5%B0%88%E9%A1%8C%E4%BA%BA%E8%A8%AA/1063762/%E8%AD%89%E7%9B%A335%E5%B9%B4-11%E5%AE%B6%E8%A2%AB%E7%95%B6%E4%BD%9C%E7%8D%B2%E7%99%BC%E7%89%8C%E8%99%9B%E6%93%AC%E8%B3%87%E7%94%A2%E5%B9%B3%E5%8F%B0-%E6%96%99%E5%B9%B4%E5%BA%95%E5%89%8D%E6%88%96%E5%88%86%E6%89%B9%E7%99%BC%E7%89%8C" target="_blank" rel="noopener nofollow">cryptocurrency exchanges</a> were in the process of seeking licenses, and were partway through a first evaluation. The Hong Kong SFC, which is marking its 35th anniversary this year, aims to maintain a level playing field in the market and make progress on several key initiatives. 
Liang told Hong Kong 01 that they have been trying to legalize the operation by toughening regulations on virtual asset trading platforms. It will be getting down to work next year, she said. 
Liang talked about potential initiatives that include the tokenization of traditional products and regional use-cases of blockchains — noting a keen interest in web3 technologies. This initiative forms part of the SFC’s broader mission to embrace financial innovation and lead Hong Kong’s financial market transformation. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter size-full wp-image-49052" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/01926a20-01f1-7cfe-934b-35ff1aacd8fb.webp" alt="Hong Kong SFC goals" width="655" height="322" title="Can Hong Kong SFC Approval Propel the Next Crypto Boom? 28"> 
<h2 id="strong-hong-kong-sfc-goals-and-virtual-asset-plans-strong">Hong Kong SFC Goals and Virtual Asset Plans</h2> 
The Hong Kong SFC has made strategic goals for the organization for the years 2024 to 2026. The goals are to enhance market resilience, enhance the competitiveness of the capital market of Hong Kong on a global level, and increase the effectiveness of the institutions. As for the virtual asset trading, Liang noted that the commission licensed three platforms, namely: Hong Kong Virtual Asset Exchange (HKVAX), OSL Exchange and <a href="https://thebitjournal.com/hashkey-capital-backs-catizen-ai-publisher-signaling-strong-commitment-to-ai-and-gamefi/" target="_blank" rel="noopener">HashKey Exchange.</a> 
For now, retail crypto investors based in Hong Kong can only trade four kinds of cryptocurrencies. This city seems to have received criticism for the slow pace of developing the crypto regulations, although it has always made claims telling its citizens that it aims at becoming the center of crypto and fintech transformation. In contrast, however, Leung noted that she anticipates the completion of the regulatory framework for assets emerging as virtual currencies will be done by the end of next year. 
The authorities of Hong Kong SFC have turned to the strategy of providing licenses and regulating crypto companies after the occurrence of the JPEX Exchange scandal worth $165 million in Silk Road China in 2023. 
More than 2,500 residents of Hong Kong claim that they fell victim to the exchange, which was actively advertised in the city, especially its services. Of September JPEX had increased withdrawal charges and restricted access for customers to their funds. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-49062 size-full" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/10/DALL·E-2024-10-08-16.03.46-A-futuristic-scene-highlighting-Hong-Kongs-SFC-approving-new-crypto-platforms.-The-image-features-advanced-city-architecture-with-digital-screens-and.webp" alt="Can Hong Kong SFC Approval Propel the Next Crypto Boom?" width="1792" height="1024" title="Can Hong Kong SFC Approval Propel the Next Crypto Boom? 29"> 
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<h2 id="strong-how-hkvax-got-approved-as-the-third-crypto-exchange-in-hong-kong-strong">How HKVAX Got Approved as the Third Crypto Exchange in Hong Kong</h2> 
Hong Kong’s securities regulator has approved the city’s third cryptocurrency exchange, marking the first licensed under a two-year-old virtual-asset regulatory framework that has struggled to gain momentum. On Thursday, Hong Kong Virtual Asset Exchange (HKVAX) received a licence for its trading platform, according to the Securities and Futures Commission’s (SFC) updated list.&nbsp; 
&nbsp; 
HKVAX, known for its expertise in security token offerings (STO) and <a href="https://thebitjournal.com/rwa-and-ai-memecoins/" target="_blank" rel="noopener">real-world asset</a> (RWA) tokenization, plans to provide over-the-counter trading, exchange, and custody services, the company said in a statement on Friday. The licence shows “Hong Kong’s determination to lead in the virtual-asset industry,” said co-founder and CEO Anthony Ng. He added that HKVAX wants to position the city as “the STO and RWA hub for Asia and beyond.” 
Before the Hong Kong SFC approved HKVAX, only two local cryptocurrency firms, HashKey Group and OSL, were allowed to serve retail customers. Following the scandal, Hong Kong decided to strengthen its crypto regulations and crack down on unlicensed firms. The Hong Kong SFC also formed a task force with the police to address illegal crypto exchange activities and updated its rules on crypto sales and related requirements.

Can Hong Kong SFC Approval Propel the Next Crypto Boom?

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The Bit Journal

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