More Crypto Exchanges Expected to Gain Approval in Hong Kong This Year

Hong Kong's Securities and Futures Commission (SFC) plans to approve more cryptocurrency exchanges by year-end, according to CEO Julia Leung.

She recently noted that 11 platforms are undergoing on-site evaluations, following the recent approval of HKVAX, the third exchange authorized in the city. HashKey and OSL also hold upgraded licenses, while Bullish, the parent of CoinDesk, is among the applicants.

Although the SFC didn’t clarify the total number of applicants, it lists 11 or 16 on its website. This potential for new approvals comes amid criticism that Hong Kong’s regulatory framework may impede its ambitions to be a crypto and Web3 hub.

Concerns were raised earlier this year about practices at some exchanges, including reliance on a few executives for asset management and insufficient safeguards against cyber threats. Major firms like Coinbase withdrew applications, while OKX and Bybit canceled theirs, possibly due to an SFC directive to block mainland Chinese users. In contrast, Crypto.com remains an applicant.

Lawmaker Duncan Chiu criticized the SFC’s stringent approval criteria as inappropriate for the evolving Web3 sector. The SFC also faces scrutiny for its role in the JPEX scandal, which left over 2,600 Hongkongers with $200 million in losses. While arrests have been made, no charges have been filed.

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