Hong Kong security regulator to issue crypto license guidelines in May

Regulation

The Hong Kong Securities Futures Commission (SFC) is reportedly set to release cryptocurrency exchange licensing guidelines next month.

The plans were reported by Bloomberg on April 27, which cited comments from the SFC’s chief executive Julia Leung on Thursday.

The incoming guidelines will provide support to crypto trading platforms that will be able to offer trading services to retail investors on June 1.

Leung said the consultation process on the licensing regime received over 150 responses from interested parties, according to Bloomberg.

Anti-Money Laundering (AML) and Know Your Client (KYC) regulatory requirements were some of the key considerations made in the Feb. 20 report that Leung was presumably referring to.

While confirmation awaits for most prospective Virtual Asset Service Provider (VASP) licensees, some trading platforms have already begun offering crypto-related services to investors under the SFC’s supervision.

OSL and Hashkey Group are amongst the few trading platforms to have already received licenses from the SFC, according to Reuters.

Related: Hong Kong’s crypto ambition gets subtle nod from Beijing: Report

Despite Hong Kong’s ambition to become the next crypto hub, not every trading platform has chosen to stick around for the long haul.

Bitget — a crypto exchange with $1.4 trillion assets in reserve — announced on April 24 that it will cease offering services to its Hong Kong customers when the Hong Kong VASP regime takes effect on June 1.

Magazine: Asia Express: 3AC cooks up a storm, Bitcoin miner surges 360%, Bruce Lee NFTs dive

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