Hong Kong, an autonomous administrative unit within China, announced earlier this year that it would distribute licenses for exchanges trading crypto. A list of companies applying for retail crypto trading licenses will be announced soon.
A list of licensed virtual asset trading platforms (VATPs) will be made public, the Hong Kong Securities and Futures Commission (SFC) said in a statement. In addition, lists of closed VATPs and VATPs considered licensed as of June 1, 2024 will also be published. In a statement, the SFC said: “It will publish a special list of suspicious VATPs to help the public more easily identify suspicious VATPs doing business within Hong Kong and raise awareness.” It was announced that the lists will be available on the institution’s website.
SFC Intermediaries Licensing Director and Head of Fintech Unit Elizabeth Wong said publishing the list of applicants allows the public to examine whether a particular platform has made false statements regarding its license applications. According to local media, there are 4 companies that applied for the license.
Police investigation…
The SFC’s move comes after the regulator reported on September 13 that cryptocurrency e-commerce platform JPEX had applied for a virtual asset trading license in Hong Kong.
Last week, Hong Kong police raided 20 locations related to the JPEX exchange and 11 people were arrested. Authorities also asked local telecommunications providers to block online access to JPEX.
The city’s FinTech Association announced in May that the city’s government would introduce a licensing regime for crypto service providers and exchanges by June 1. Additionally, the Securities and Futures Commission announced that licensed crypto platforms will be allowed to serve retail customers.
Hong Kong grants license for $20 million…
Crypto exchanges must pay up to $20 million to obtain a Hong Kong business license. In addition, stock exchanges must maintain a paid-in capital of 5 million Hong Kong dollars ($640 thousand) and liquid capital of at least 380 thousand dollars. They must have liquid assets equivalent to at least one year’s operating expenses, excluding virtual assets.
Source: The Block, Cointelegraph