Hong Kong Cracks Down on Unlicensed Crypto Exchanges
In a bold move to regulate the cryptocurrency market, Hong Kong has issued a directive mandating all crypto exchanges without a license from the Securities and Futures Commission (SFC) to cease operations immediately. The deadline for these exchanges to either apply for a license or shut down is February 29, with a three-month grace period for compliance.
While over 22 exchanges initially pursued licensing, many retracted their applications just before the deadline. Among the notable exits from the Hong Kong market in May were OKX, Huobi HK, and four other exchanges. Gate.HK, a local crypto exchange, also ceased operations on May 23, citing the need for a redesign of its trading platform to meet regulatory requirements.
Gate.HK is currently working on the necessary overhaul and plans to resume business in Hong Kong once the relevant licenses are obtained. As of now, only HashKey and OSL Exchange have received approval from the SFC, with the list of approved exchanges expected to be announced by June 1.
The SFC’s stringent regulations signal a future of tight oversight and compliance for crypto exchanges in Hong Kong. In a related development, the Hong Kong Securities and Futures Professionals Association (HKSFPA) proposed in April that crypto firms in the city establish independent self-regulatory committees.
With a focus on data-driven and fact-based content, Aaron, a seasoned analyst with a Master’s degree in Economics, Politics, and Cultures of the East Asia region, is a go-to expert for all things related to digital currencies. His insights and expertise in the FinTech industry provide valuable perspectives on the evolving landscape of cryptocurrency regulation in Hong Kong and beyond.
