The Securities and Futures Commission (SFC) has announced that only platforms that have applied for a license and been approved by the SFC will be allowed to operate in Hong Kong after June 1, 2024.
The regulator has also set February 29, 2024, as the last day for platforms to apply for a license and May 31, 2024, as the final date for unlicensed platforms to cease operations in the region.
The SFC made this known in an advisory notice it issued to investors regarding the risks associated with virtual assets on February 5 2024. The regulator advised investors to review the lists of licensed virtual asset trading platforms and applicants on its website, especially any time after March 1, 2024, to ensure that the platforms they use are in compliance with the new regulations.
The SFC also urged investors to review the lists regularly, as the status of platforms can change over time. The SFC reminds the public that the processing of these applications is an ongoing process, and it’s important to be aware of the associated risks.
In May 2023, the Hong Kong government introduced new regulations for the digital assets industry to make the island a hub for digital and financial innovation. The objective was to establish a sustainable and responsible virtual asset market by implementing clear rules and requirements. The government hoped this would create a conducive environment for all platforms and investors and help the island realize its aspirations to be a digital and financial innovation hub.
Currently, many platforms are still in the process of applying for licenses in the region. According to the SFC’s website, about 14 entities have applied for the Virtual Asset Trading Operator (VATP) license, with Bybit being the most recent addition to the list.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
