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The Hong Kong Securities and Futures Commission (SFC) has more than doubled the number of approved virtual asset trading platforms (VATPs) with the addition of four firms.
<h2 id="a-rigorous-licensing-process">A rigorous licensing process</h2>
Accumulus GBA Technology (Hongkong), DFX Labs, Hong Kong Digital Asset EX and Thousand Whales Technology (BVI) received licenses on Dec. 18. They joined HashKey, OSL and HKVAX. According to an SFC announcement, the new exchanges were approved under the agency’s swift licensing procedure for deemed-to-be-licensed VATP applicants.
The newly approved exchanges underwent on-site inspections and responded to feedback from the SFC. The inspections concentrated on safeguarding client assets, Know Your Customer processes and cybersecurity. SFC executive director of intermediaries Eric Yip said:
<blockquote>
 “We have been proactively engaging with VATPs’ senior management and ultimate controllers which helps drive home our expected regulatory standards and expedite our licensing process for VATPs.”
</blockquote>
The agency seeks “to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem,” Yip added.
The exchanges will operate in a restricted scope and must perform vulnerability assessments and penetration tests through an independent third party with satisfactory results before operating restrictions are lifted. The SFC will supervise that process. It <a data-ct-non-breakable="null" href="https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=24EC65" rel="null" target="null" text="null" title="null">released</a> a circular describing its expectations on Dec. 18.
All of the approved VATPs are licensed to deal with securities, provide automated trading services, and operate a VATP.
<figure>
 <img alt="4 more virtual asset trading platforms licensed in Hong Kong" src="https://s3.cointelegraph.com/uploads/2024-12/0193dac8-a173-71fc-bab4-22ac1ac12c97" title="">
 <figcaption style="text-align: center;">
 The VATP licensing process. Source: <a data-ct-non-breakable="null" href="https://apps.sfc.hk/edistributionWeb/api/circular/openAppendix?lang=EN&amp;refNo=24EC65&amp;appendix=0" rel="nofollow noopener" target="_blank" text="null" title="https://apps.sfc.hk/edistributionWeb/api/circular/openAppendix?lang=EN&amp;refNo=24EC65&amp;appendix=0">Hong Kong SFC</a>
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-hkvax-third-licensed-crypto-exchange-retail" rel="" target="_self" text="null" title="https://cointelegraph.com/news/hong-kong-hkvax-third-licensed-crypto-exchange-retail">Hong Kong makes HKVAX third licensed retail crypto exchange</a>
<h2 id="more-exchanges-likely-to-be-approved">More exchanges likely to be approved</h2>
Eleven VATPs remain on the applicant’s list, seven of which are “deemed to be licensed.” That status indicates that the exchange conforms to Hong Kong’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance.&nbsp;
<figure>
 <img alt="4 more virtual asset trading platforms licensed in Hong Kong" src="https://s3.cointelegraph.com/uploads/2024-12/0193dac9-da56-7379-ba70-651247885fda" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/RoundtableSpace/status/1866830663531585830" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/RoundtableSpace/status/1866830663531585830">Mario Nawfal’s Roundtable</a>
 </figcaption>
</figure>
A popup window appears on the SFC webpage listing them with a warning to users to trade only on licensed platforms, although it is possible to do business with exchanges “deemed to be licensed.”
SFC CEO Julia Leung <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-more-crypto-exchange-licenses-year-end" rel="null" target="null" text="null" title="null">told a local media outlet</a> in October that new licenses would be granted in batches as part of its roadmap through 2026 that aims to advance regulation, promote real-world asset tokenization, and explore blockchain technology.
There <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-crypto-retail-avalanche-chainlink-listing" rel="null" target="null" text="null" title="null">are only four cryptocurrencies</a> available for purchase in Hong Kong. They are Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>), Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>), Avalanche (<a data-ct-non-breakable="null" href="/avalanche-price-index" rel="null" target="null" text="null" title="null">AVAX</a>) and Chainlink (<a data-ct-non-breakable="null" href="https://cointelegraph.com/chainlink-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/chainlink-price-index">LINK</a>). Retail cryptocurrency trading <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-hong-kong-debuts-retail-crypto-trading-with-hash-key-exchange" rel="" target="_self" text="null" title="https://cointelegraph.com/news/crypto-hong-kong-debuts-retail-crypto-trading-with-hash-key-exchange">was legalized in Hong Kong</a> in August 2023.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/victims-ftx-hong-kong-civil-suit-gemini-singapore-express/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/victims-ftx-hong-kong-civil-suit-gemini-singapore-express/">‘Hong Kong’s FTX’ victims win lawsuit, bankers bash stablecoins: Asia Express</a>
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4 more virtual asset trading platforms licensed in Hong Kong

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