Nikolas Sargeant
Hong Kong is set to speed up the licensing process for crypto trading platforms as part of its strategy to become a leading global cryptocurrency hub. Joseph Chan, Acting Secretary for Financial Services and the Treasury, announced that the Securities and Futures Commission (SFC) will facilitate a "swift licensing process" and establish a "consultative panel" for licensed platforms starting early next year. The region, which launched its crypto licensing regime in June 2023, has already granted licenses to platforms like OSL Exchange, HashKey Exchange, and HKVAX.
In addition to crypto trading, Hong Kong is also preparing to regulate stablecoins. The government plans to introduce a legislative bill this month that will require stablecoin issuers to obtain licenses from the Hong Kong Monetary Authority (HKMA). In July of this year, the city released documentation for stablecoin issuers, leading the way to clear regulatory processes.
Furthermore, the city is focusing on crypto custody services, with plans to introduce proposals to license custodians in 2024. These initiatives come as Hong Kong continues to attract global crypto firms and solidify its position in the competitive global crypto market.
Less than a month ago, ZA Bank, Hong Kong’s largest digital bank, launched BTC and ETH trading for retail customers. ZA Bank, licensed by the Hong Kong Monetary Authority in 2019, serves over 800,000 users.
