The CSRC said the decision was made based on public demand.
Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), said it will publish a list of applicants for cryptocurrency trading licenses following the JPEX investigation that led to multiple arrests in Hong Kong.
“The JPEX incident highlights the risks of dealing with unregulated virtual asset trading platforms (VATPs) and the need for appropriate supervision to maintain market confidence,” the CSRC said in a statement on Monday. “It also suggests that the dissemination of information to the investing public through alert lists, warnings and investor education could be further strengthened to help the investing public better understand the potential risks posed by suspicious websites or VATPs.”
Last week, Hong Kong Chief Executive John Lee stressed that cryptocurrency platforms must be licensed by the SFC to protect investors.
“We’re going to do more public education so investors understand the risks,” he said at the time.
Only OSL Digital Securities Limited and Hash Blockchain Limited have obtained licenses.
According to the South China Morning Post, four other companies have applied for licenses – HKVAX, HKBitEx, Hong Kong BGE Limited and Victory Fintech Company Limited – but they are relatively small and unknown. Many major cryptocurrency exchanges have not yet expressed interest in obtaining licenses in Hong Kong.