11 virtual asset trading platforms approved by the Securities and Futures Commission, "Hong Kong's decline" is self-defeating

On June 1 , Children’s Day, the Hong Kong Securities and Futures Commission gave the virtual asset market a big gift.

The Hong Kong Securities and Futures Commission completed the update of the list of virtual asset trading platforms yesterday. According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, 11 platforms including HKbitEX , PantherTrade , Accumulus , DFX Labs , Bixin.com , xWhale , YAX , Bullish , Crypto.com , WhaleFin , and Matrixport HK were considered to be licensed; only 6 platforms including BGE , HKVAX , VDX , bitV , HKX , and bitcoinworld were left on the application list without being considered to be licensed.

Bitkoala learned that all virtual asset trading platform applicants listed in the Hong Kong Securities and Futures Commission's list have not been licensed and may not comply with the requirements of the Securities and Futures Commission. The Hong Kong Securities and Futures Commission has recently reminded the public that the non-violation period of virtual asset trading platforms operating in Hong Kong under the Anti-Money Laundering Ordinance will end on June 1. From June 1 this year, all virtual asset trading platforms operating in Hong Kong must be licensed by the Securities and Futures Commission in accordance with the Ordinance, or virtual asset trading platform applicants who are " deemed to be licensed " . Violating the Ordinance to operate a virtual asset trading platform in Hong Kong is a criminal offense. The Hong Kong Securities and Futures Commission said it will take all appropriate actions against any illegal acts. The Hong Kong Securities and Futures Commission added that the Securities and Futures Commission does not expect the platform to actively promote its services or establish business relationships with new retail customers before the actual implementation and effectiveness of the policies, procedures, systems and control measures of the platform applicant deemed to be licensed are satisfied by the Securities and Futures Commission and formally licensed.

Where have those people who once questioned and looked down on the development of Hong Kong’s virtual asset market gone?

Reference reading: "Those who say it's not good can stop talking about it, the Hong Kong virtual asset market is really good!"

When the bullets are flying, don't judge

Frankly speaking, the efficiency of Hong Kong regulatory agencies is extremely high. On May 31, 2023 , the Hong Kong Securities and Futures Commission issued a circular on the transitional arrangements for the VATP license manual and licensing system. The system will take effect on June 1 , 2023 and set a one-year transition period (until June 1, 2024 ). Virtual asset trading platforms operating in Hong Kong are required to obtain a license issued by the regulatory authorities by the end of the transition period, otherwise they will have to terminate their business.

After the transition period ended on May 31 , 2024 , the Hong Kong Securities and Futures Commission updated the handling situation on June 1 , approving 11 virtual asset platforms as "deemed to be licensed " at one time. The Securities and Futures Commission emphasized that all virtual asset trading platform applicants listed in the applicant list have not been licensed and may not comply with the requirements of the Securities and Futures Commission; and no licenses have been formally issued to platform applicants who are deemed to be licensed.

In fact, the Hong Kong Securities Regulatory Commission has a strict approval process for these platforms, involving multiple aspects of review, including but not limited to:

1. Platform technology and security measures

2. Anti-money laundering and anti-terrorist financing compliance

3. Trading mechanism and risk management

4. Investor protection measures

These standards ensure that the approved platforms can effectively prevent risks and protect the rights and interests of investors during operation, so that the JPEX incident will not happen again in Hong Kong. It is reported that after approving the operation of the platform, the Hong Kong Securities Regulatory Commission will continue to strictly supervise it, including regular reviews, on-site inspections and real-time monitoring. This move will not only help maintain market order, but also promptly discover and correct potential problems and ensure the healthy development of the market.

The virtual asset market’s reaction after 11 platforms were licensed

The market reacted positively to the approval. Investors generally believe that this is a major positive for the development of Hong Kong's virtual asset market, which will help boost market confidence and activity. The number of users and trading volume of the approved platforms have increased significantly, and market enthusiasm is high. For the virtual asset industry, this approval not only means further opening of the Hong Kong market, but also marks the acceleration of the industry's standardization process. Other unapproved platforms have also stated that they will strengthen compliance construction and strive to obtain licenses as soon as possible. The industry as a whole has entered a new stage of healthy competition and development.

The international community has also paid close attention to and given positive comments on Hong Kong's move. As one of the global financial centers, Hong Kong's progress in virtual asset regulation is regarded as an important indicator. Many international institutions and investors are optimistic about the development prospects of the Hong Kong market and plan to increase their investment in Hong Kong's virtual asset market. As a global financial center, Hong Kong has a sound financial infrastructure and advanced technical support. The government actively guides policy formulation, focusing on market development while not neglecting risk prevention. The approval of 11 platforms this time is a concrete manifestation of Hong Kong's policy advantages.

The development of the virtual asset market is inseparable from technological innovation. Hong Kong has strong R&D capabilities in blockchain technology, smart contracts and financial technology. As more platforms are approved and operated, technological innovation will be further accelerated, driving the continuous progress of the market. The development of Hong Kong's virtual asset market is not limited to the local market, but also focuses on cooperation with the international market. Through cooperation with other financial centers and regulators, Hong Kong can play a greater role in the global virtual asset market and attract more international capital and talents.

The Securities and Futures Commission "slaps" those who are pessimistic about Hong Kong

The approval of 11 virtual asset trading platforms as "deemed to be licensed" demonstrates Hong Kong's important position in the global financial market. Those who were pessimistic about Hong Kong's financial prospects must re-examine Hong Kong's competitiveness and influence. Hong Kong not only continues to maintain its advantages in the traditional financial field, but also demonstrates strong innovation capabilities in the emerging financial technology field. The SFC's move demonstrates the forward-looking and flexibility of Hong Kong's policies. Against the backdrop of the rapid development of the global virtual asset market, Hong Kong is able to quickly adjust and optimize its regulatory policies to adapt to market demand and technological changes. This flexibility enables Hong Kong to occupy a favorable position in the fierce international competition.

Through strict supervision and approval, Hong Kong has sent a clear signal to the market: virtual asset transactions in Hong Kong are not only legal, but also protected and regulated. This has greatly enhanced market confidence, attracted more investors and enterprises to enter the Hong Kong market, and further promoted economic development.

The Hong Kong Securities and Futures Commission's approval of operating licenses for 11 virtual asset trading platforms is an important milestone in the development of Hong Kong's virtual asset market. This decision not only demonstrates Hong Kong's policy advantages and technical strength in the field of virtual assets, but also effectively responds to those who doubt Hong Kong's financial prospects.

In the future, with the participation of more platforms and the continuous innovation of technology, the virtual asset market in Hong Kong will usher in a more prosperous development stage. The Securities and Futures Commission and other regulatory agencies will continue to play an important role in ensuring the healthy and sustainable development of the market. Against the backdrop of the booming global virtual asset market, Hong Kong is expected to become an important hub in this emerging field and continue to play a key role in the international financial market.

Through this incident, Hong Kong has once again proved to the world its strong adaptability and unlimited potential. Those who are pessimistic about Hong Kong have to admit that Hong Kong's rise in the field of virtual assets is just a microcosm of its financial innovation and development. In the future, Hong Kong will continue to play an important role on the global financial stage and lead the trend of the virtual asset market.