Hong Kong Securities and Futures Commission: Deadline for Hong Kong Virtual Asset Trading Platform License Applications Expires

The Securities and Futures Commission (SFC) of Hong Kong recently issued an important reminder to the industry and investors regarding the deadline for virtual asset trading platforms to submit license applications during a specific transitional period. This reminder highlights the new regulatory framework for virtual asset services providers operating in Hong Kong.

Hong Kong's cryptocurrency regulation came into effect on June 1: Exchanges are responsible for protecting retail investors, and trading of stablecoins is temporarily prohibited.

Deadline for Transitional Period Applications

The Securities and Futures Commission (SFC) has stated that the deadline for virtual asset trading platforms intending to operate legally in Hong Kong beyond June 1, 2024, to submit their license applications was February 29, 2024. This means that those platforms that failed to submit their applications by the deadline will have to cease their operations in Hong Kong by May 31, 2024.

This also explains why several exchanges resubmitted their applications before the deadline after their initial applications were withdrawn.

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Importance of Hong Kong License Application

In order to operate legally in Hong Kong, virtual asset trading platforms must obtain an official license from the SFC. This license not only symbolizes legality but is also a crucial demonstration of their business compliance and reliability to investors. Engaging in virtual asset trading activities without authorization in Hong Kong is considered a criminal offense, highlighting the regulator's firm stance on maintaining market order and protecting investor interests.

Investor Verification Guide

Faced with the regulatory status of virtual asset trading platforms, the SFC encourages investors to utilize the list provided on its official website to verify whether a platform has obtained an official license or is in the process of applying. This step is crucial in ensuring the safety of investors' funds, especially when choosing a trading platform.

Risk Advisory and Call for Secure Trading

The SFC specifically cautions that even platforms in the application process carry uncertainty, and their applications may ultimately not be approved. Therefore, it is vital for investors to only choose platforms authorized by the SFC when investing in virtual assets to safeguard their investments from the impact of unregulated activities.