Hong Kong’s Securities and Futures Commission (SFC) has ceased accepting license applications from crypto exchanges as of February 29th. Noncompliant trading platforms that failed to submit applications by this deadline are required to wind up their operations in Hong Kong by May 31, 2024.
The SFC’s directive aims to regulate the crypto exchange landscape and protect investors. Currently, only two crypto trading operators, OSL Digital Securities and HashKey Exchange, have received formal licenses. Twenty-two others have applied for licenses, while four, including Huobi HK, Meex, BitHarbour, and Ammbr, either withdrew their applications or had them returned.
During the closure period, noncompliant exchanges will face limitations on operational capabilities and must cease all marketing activities within Hong Kong. The SFC will maintain a public list of crypto platforms subject to closure, enhancing awareness of associated risks.
Moving forward, the SFC will publish a list of licensed crypto exchanges by June 1, 2024. However, licensing is not guaranteed for all listed entities.
Once licensed, crypto exchanges can facilitate retail investor trading of Bitcoin and Ether. The SFC is also reviewing various altcoins and stablecoins for potential trading approval.
In related news, the Hong Kong SFC has issued a warning regarding an imposter crypto exchange posing as MEXC. Additionally, concerns have arisen regarding the communication blackout from BitForex, a Hong Kong-based exchange, following a suspension of withdrawals for at least three days.
