News

Hong Kong to Inspect Crypto Platform Offices as Key Compliance Deadline Approaches

single-image

If some or all of the 18 license applicants fail to submit their applications by this crucial deadline, Hong Kong’s efforts to establish itself as a significant hub for cryptocurrency may come under scrutiny.

CryptoCaster Quick Check:

  • The regulatory body in Hong Kong will carry out on-site examinations of cryptocurrency platforms that provide trading services and have submitted license applications.
  • All cryptocurrency platforms operating in Hong Kong will need to be licensed or “deemed-to-be-licensed” by June 1, 2024.

As a crucial deadline approaches, the Securities and Futures Commission (SFC) of Hong Kong will visit cryptocurrency trading platforms that wish to proceed with their licensing applications in person, the regulator revealed on Tuesday.

Stay in the know on crypto by frequently visiting Crypto News Today

By June 1, 2024, all cryptocurrency platforms operating in Hong Kong that offer trading services under the name virtual asset trading platforms (VATPs) will need to have a SFC license or be temporarily in the status of “deemed-to-be-licensed,” meaning they will need to take steps to become fully compliant. According to the SFC, operating in Hong Kong after that date would constitute a “criminal offence” in violation of anti-money laundering and counterterrorism legislation.

Advertisement

The announcement stated, “The SFC will conduct on-site inspections to ascertain their compliance with the SFC’s regulatory requirements, with a particular focus on their safeguarding of client assets and know-your-client processes, during the coming months while the deemed-to-be-licensed VATP applicants pursue their applications.”

The only two companies that are currently listed as having SFC licenses are OSL Digital Securities Limited and Hash Blockchain Limited. Eleven entities have either removed or withdrawn their applications, leaving only eighteen entities’ applications in the system. Huobi Hong Kong and OKX, two cryptocurrency exchanges, recently withdrew their applications.

Advertisement

Notably, the number of the 18 entities that are still listed in the SFC system as “deemed-to-be-licensed” will be known by June 1. Should any or all of the 18 applicants fail to advance past this crucial deadline, Hong Kong’s efforts to establish itself as a leading center for cryptocurrency may come under scrutiny.

According to the SFC, applicants should not actively promote their offerings or bring on new retail customers before obtaining a complete license.

According to Angela Ang, a senior policy adviser at blockchain intelligence company TRM Labs, “it’s unsurprising that SFC plans to introduce a higher level of scrutiny than is typical during an application process, such as onsite inspections.” “The SFC may be attempting to clean house prior to the deeming arrangement taking effect, as evidenced by the recent wave of application withdrawals.”CRYPTOCASTER® - DECENTRALIZED FREEDOM!


We hope you found this article insightful. Before you go, please consider supporting CryptoCaster’s independent journalism.

In the world of media owned by billionaires like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase), influence over narratives surrounding cryptocurrency and Web3 often reflects their interests. CryptoCaster is different. With no billionaire backers or shareholder obligations, we are committed solely to public interest journalism, covering crypto advancements and institutional changes without profit-driven motives.

Unlike much of mainstream media, which can fall into neutrality traps that obscure the real impacts on retail investors, we’re guided by transparency and integrity. We are unafraid to take a stand in the ongoing struggle against fiat banking dominance and in support of the monetary innovation driven by crypto and Web3. Reporting on issues like FTX, Binance, and Ripple, we bring a bold, unfiltered outsider’s view on global financial disruption—free from the constraints of traditional media narratives.

CryptoCaster remains paywall-free, accessible to everyone, thanks to the support of readers like you. Your contributions keep us independent and help ensure that critical information on the crypto landscape reaches all. If you value our work, please consider supporting us with a one-time contribution starting at just $1 in Bitcoin or Ether, or even monthly if you’re able. Scroll down to find our wallet addresses and help keep CryptoCaster independent and thriving.

Thank you for your support,

Kristin Steinbeck
Editor, CryptoCaster


Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.


Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
SOL – DLvdMu85dW6pZMhw2E4S3pp81qQQGpy5UcdTsFEFBu4b
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


CRYPTOCASTER HEATMAP


You may also like