Hong Kong to Issue Virtual Asset Trading Licenses to Eight Cryptocurrency Companies by End of 2021

According to reports, Angelina Kwan, CEO of Stratford Finance, a financial services company, and former regulator of the Hong Kong Securities and Futures Commission (SFC), said that as part of Hong Kong’s new cryptocurrency licensing system, Hong Kong may issue virtual asset trading licenses to at least eight cryptocurrency related companies by the end of this year. Kwan said that encryption companies hoping to set up in Hong Kong need to take swift action because there may be a backlog of application reviews when the new licensing system takes effect in June.

Stratford Finance CEO: Hong Kong may issue licenses to at least 8 cryptocurrency companies by the end of the year

As the use of cryptocurrencies and blockchain technology continues to gain popularity, governments around the world are trying to regulate the cryptocurrency market to prevent fraudulent activities and protect investors. Recently, news broke out that Hong Kong will be issuing virtual asset trading licenses to at least eight cryptocurrency related companies by the end of this year. This new licensing system is set to take effect in June, and the backlog of application reviews means that companies hoping to set up in Hong Kong need to take swift action.

The New Cryptocurrency Licensing System in Hong Kong

The Hong Kong Special Administrative Region government (HKSAR) has been working on a comprehensive regulatory framework for virtual assets since November 2019. The framework is designed to regulate virtual asset trading platforms operating in Hong Kong and set out guidelines for the proper safeguarding of client assets, anti-money laundering and counter-terrorism financing, as well as compliance with licensing and supervision requirements.
The new licensing system, which takes effect on May 31, 2021, requires virtual asset trading platforms operating in Hong Kong to apply for a license from the Securities and Futures Commission (SFC). According to the SFC, virtual assets trading platforms that have a presence in Hong Kong and offer trading services to Hong Kong residents should be regulated.

Virtual Asset Trading Licenses to be Issued to Eight Companies by Year End

Angelina Kwan, CEO of Stratford Finance and former regulator of the Hong Kong Securities and Futures Commission, said that Hong Kong may issue virtual asset trading licenses to at least eight cryptocurrency related companies by the end of 2021. She encouraged companies interested in setting up in Hong Kong to take swift action, as there may be a backlog of application reviews under the new licensing system.
Kwan also added that the Hong Kong government has been proactive in developing regulatory measures for the virtual asset market. She mentioned that the SFC, as the regulatory agency, has been engaging with the virtual asset industry to ensure that companies can comply with the requirements of the new licensing regime.

Benefits of the New Licensing System

The new licensing system is a significant step forward in regulating the cryptocurrency market in Hong Kong. The new rules should help to enhance transparency and accountability, reduce fraud, and promote the growth of the virtual asset market. The licensing system will also help to improve investor protection and enhance the confidence of local and overseas investors in the virtual asset market.

Conclusion

The cryptocurrency market in Hong Kong has been growing steadily, and this new licensing system will help to regulate the industry and reduce fraud. With the new licensing system set to take effect in June, companies hoping to set up in Hong Kong need to take swift action to avoid the backlog of application reviews. The Hong Kong government has been proactive in developing regulatory measures for the virtual asset market, and the introduction of the new licensing system is expected to benefit both the trading platforms and investors.

FAQs

1. What is the new licensing system in Hong Kong?
– The new licensing system is a comprehensive regulatory framework for virtual assets that requires virtual asset trading platforms operating in Hong Kong to apply for a license from the Securities and Futures Commission.
2. How many virtual asset trading licenses will be issued in Hong Kong this year?
– Hong Kong may issue virtual asset trading licenses to at least eight cryptocurrency related companies by the end of 2021.
3. What are the benefits of the new licensing system in Hong Kong?
– The new licensing system should help to enhance transparency and accountability, reduce fraud, and promote the growth of the virtual asset market. The licensing system will also help to improve investor protection and enhance the confidence of local and overseas investors in the virtual asset market.