11 virtual asset trading platforms approved, "Hong Kong's decline" is self-defeating

Author: Bitkoala; Source: Bitkoala Finance

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

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, HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, xWhale, YAX, Bullish, Crypto.com, WhaleFin, Matrixport HK, lang="EN-US">11 platforms were deemed to be licensed; among the application list, only BGE, HKVAX, VDX, bitV, HKX, and bitcoinworld, a total of 6 platforms were not deemed to be licensed.

Bitkoala has 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 for 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 before the actual implementation and effectiveness of the policies, procedures, systems and control measures of the platform applicants deemed to be licensed are satisfied by the Securities and Futures Commission and formally licensed, the Securities and Futures Commission does not expect the platform to actively promote its services or establish business relationships with new retail customers.

Where are those who once questioned and pessimistic about the development of the virtual asset market in Hong Kong?

Reference reading: "Those who say "not fragrant" can stop, the Hong Kong virtual asset market is "really fragrant"! 》

Don't judge when the bullets are flying

Frankly speaking, the efficiency of Hong Kong's regulatory authorities is extremely high. The Hong Kong Securities and Futures Commission issued a circular on the transitional arrangements for the VATP licence manual and licensing system on May 31, 2023. The system will take effect on June 1, 2023, and a one-year transition period is set (until June 2024). On 1 day), 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, and approved 11 virtual asset platforms as "deemed to be licensed" at one go. The SFC 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 SFC; 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 safeguard the rights and interests of investors during their operations, 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 and Futures Commission will continue to implement strict supervision on it, including regular review, on-site inspection and real-time monitoring. This move will not only help maintain market order, but also timely discover and correct potential problems and ensure the healthy development of the market.

11 platforms were regarded as virtual asset market reactions after being licensed

As soon as the news of this approval came out, the market reacted positively. Investors generally believe that this is a major positive for the development of Hong Kong's virtual asset market, which will help to enhance market confidence and activity. The number of users and trading volume of the approved platforms have increased significantly, and the market enthusiasm is high. For the virtual asset industry, this approval not only means the 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 high attention to and positively evaluated 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 complete 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. With the approval and operation of more platforms, 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 SFC "slaps" those who look down on 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 measures demonstrate 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 has been 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 are not only legal in Hong Kong, 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 are pessimistic about Hong Kong's financial prospects.

In the future, with the addition of more platforms and continuous technological innovation, Hong Kong's virtual asset market will usher in a more prosperous development stage. The Securities and Futures Commission and other regulatory agencies will continue to play an important role to ensure 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.