Hong Kong Plans to Approve More Crypto Exchange Licenses by 2024
Hong Kong’s Securities and Futures Commission (SFC) plans to approve additional licenses for crypto exchanges by the end of 2024. This decision follows a five-month review in which only three platforms received full licenses, and 11 were granted provisional ones. The announcement indicates a renewed effort to position Hong Kong as a digital asset hub in Asia.
During the annual Fintech Week, SFC executive director Eric Yip confirmed that a finalized list of licensed exchanges is expected by year-end. This aligns with Hong Kong’s objective to create a crypto-friendly environment and enhance its status as a financial center. Yip noted that most applicants are positively responding to SFC feedback, focusing on improving transparency and investor protections.
Exchanges that meet SFC standards will receive licenses with specific restrictions until a third-party review, conducted with the SFC, confirms full compliance. This licensing phase aims to ensure high regulatory standards and address previous operational weaknesses.
A consultative panel will be established in early 2025, comprising authorized exchanges and the SFC, to encourage ongoing dialogue and regulatory collaboration. Additionally, Hong Kong is developing a framework for over-the-counter (OTC) crypto trading platforms and custodians, targeting a “safer, more regulated environment” for institutional and retail investors. Structured regulations, according to Yip, are crucial for maintaining Hong Kong's competitiveness as digital asset businesses seek regulatory clarity and security in the region.