Hong Kong SFC Approves Four New Virtual Asset Providers, Expanding Licensed VATPs Hassan Shittu | usagoldmines.com

The Hong Kong Securities and Futures Commission (SFC) has officially approved four new virtual asset trading platform (VATP) providers, significantly expanding the region’s regulatory framework for virtual assets.

The newly approved entities—Hong Kong Digital Asset EX Limited (HKbitEX), Accumulus GBA Technology (Hong Kong) Co., Limited (Accumulus), DFX Labs Company Limited, and Thousand Whales Technology (BVI) Limited (EX.IO)—join three previously licensed platforms, bringing the total number of authorized providers to seven.

Hong Kong Virtual Asset Providers: Has Licensing Gotten Easier?

Adding these four VATPs aligns with Hong Kong’s regulatory body’s objectives of enhancing investor protection and maintaining market integrity through transparent regulations.

The licensed platforms are required to adhere to stringent compliance measures, including anti-money laundering protocols, robust cybersecurity systems, and transparency in operations.

Among the newly approved platforms, HKbitEX and Accumulus have already garnered attention within the Hong Kong community for their innovative approaches to digital asset trading.

HKbitEX offers advanced over-the-counter (OTC) trading solutions to bridge the gap between institutional and retail investors.

Accumulus, on the other hand, offers crypto trading but emphasizes seamless integration into Hong Kong’s traditional financial systems.

These platforms, along with DFX Labs and Thousand Whales, are expected to operate maximally in alignment with the regulatory rules.

The SFC’s licensing process is meticulous. It thoroughly evaluates each applicant’s business model, governance structure, and compliance capabilities.

Growing Virtual Asset Ecosystem In Hong Kong

The expansion of licensed VATPs in Hong Kong is a pivotal moment for the global virtual asset ecosystem, particularly for the country itself.

It is a shift towards greater regulatory acceptance and integration of digital assets into mainstream financial markets.

The increased number of licensed platforms provides more choices and greater security assurance for investors.

Licensed VATPs are held to high standards of operation, reducing the risks associated with unregulated platforms.

Despite these advancements, challenges remain. While licensing VATPs is a step in the right direction, sustained efforts are needed to constantly educate investors about the benefits and risks of crypto trading.

According to a report on December 17, Hong Kong will adopt the OECD’s Crypto-Asset Reporting Framework (CARF) to enhance tax transparency and combat cross-border tax evasion.

The CARF was introduced in June 2023. It extends the Common Reporting Standard (CRS) to crypto assets and mandates annual account and transaction information exchanges between jurisdictions.

Hong Kong plans to complete legislative amendments by 2026, with the first automatic data exchanges scheduled for 2028.

This initiative builds on Hong Kong’s history of financial data exchange under the CRS since 2018 and aims to address the complexities of the rapidly evolving crypto market.

Also, Hong Kong is accelerating efforts to establish itself as a global crypto hub by introducing a fast-track licensing process for trading platforms.

Joseph Chan, Acting Secretary for Financial Services and the Treasury announced that the Securities and Futures Commission (SFC) plans to operationalize a consultative panel early next year to support licensed platforms.

Since the crypto licensing regime began in June 2023, firms like OSL Exchange and HashKey Exchange have gained approval to serve retail investors.

Alongside licensing, Hong Kong is advancing legislation to regulate stablecoin issuers. The Hong Kong Monetary Authority (HKMA) will license fiat-referenced stablecoins following global trends.

The post Hong Kong SFC Approves Four New Virtual Asset Providers, Expanding Licensed VATPs appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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