Enhanced Oversight and Licensing Requirements
The licensing regime by the SFC began final June 2023, purposed to guard traders and supply a clear platform for buying and selling. Functions should undergo excessive requirements for compliance: danger administration, operational integrity, and safety for customers.
A two-step approval course of is in place. First, licensed public accountants confirm the platforms’ inner methods and controls. Second, the SFC conducts its evaluation, lifting restrictions as soon as full compliance is confirmed.
Future Plans and World Ambitions
The SFC plans to launch a consultative panel for licensed platforms in early 2025. This panel will encourage collaboration between regulators and business leaders to deal with challenges and adapt to evolving expertise.
This itself represents a novel positioning of Hong Kong as a world crypto hub, with its robust regulatory framework. The SFC frequently updates the record of licensed and unregulated platforms to assist traders be extra clear of their investments.
These, in flip, underscore Hong Kong’s ambition to be on the forefront of the digital asset area, rivaling the likes of Singapore and the UAE. The most recent approvals additional cement its dedication towards constructing a secure and trusted crypto buying and selling ecosystem.