The application for virtual asset licenses in Hong Kong is undergoing changes.
The official website of the Hong Kong Securities and Futures Commission shows that as of June 6, there were 4 virtual asset platform applicants, 17 fewer than the 3 in March.
据香港证监会，虚拟资产交易平台向证监会提交牌照申请，以在2024年6月1日或之后继续在香港营运的期限（即2024年2月29日）已结束。
根据过渡安排，任何正在香港营运的虚拟资产交易平台，如没有在2024年2月29日的期限或之前向证监会提交牌照申请，则必须在2024年5月31日或之前结束其在香港的业务。
Among the companies that have withdrawn their applications for virtual asset exchange licenses is OKX, which has a certain reputation. Previously, OKX withdrew its application for a digital asset service license (VATP) in Hong Kong, citing business development needs.
Zheng Lei, chief economist of Samoyed Cloud Technology Group, told Jiemian News that there are probably two main reasons. On the one hand, Hong Kong has strict supervision over virtual license operating platforms. For some small platforms, the cost of applying for a license is not a small amount, so they may cancel the application for cost considerations.
On the other hand, according to current regulations, Hong Kong virtual asset operating platforms cannot be open to mainland funds and need to investigate the identity background of customers. From this perspective, it is not meaningful to register such a platform in Hong Kong. "In addition, the trading volume of products such as Bitcoin ETF is small and not active. If you continue to invest, when will you be able to make a profit is also a big problem."
Livio Weng, COO of HashKey Group, told Jiemian News that the withdrawal of unlicensed exchanges means that the competition landscape of Hong Kong's virtual asset service industry has moved from experimentation to a new historical stage of full compliance. At the same time, in accordance with the relevant provisions of the Anti-Money Laundering and Terrorist Financing Ordinance (AMLO), virtual asset trading platforms that have not obtained a license or are not "deemed to be licensed" need to stop trading and clear assets for Hong Kong customers before May 5. This move proves that the regulator has taken practical actions to encourage customers to actively return to compliant trading platforms and support the business development of licensed institutions.
Livio Weng expects that the implementation of the AMLO licensing system will make Hong Kong's virtual asset industry more rigorous and standardized, increase the acceptance of virtual assets, and attract more institutions, especially traditional institutions, to enter the market. Hong Kong will gradually become one of the most important virtual asset markets in the Asia-Pacific region, and the relationship between Hong Kong and Crypto will become similar to that between Nasdaq and the Internet.
In addition, the Hong Kong Securities and Futures Commission pointed out that all virtual asset trading platform applicants listed in the list have not been licensed by the Securities and Futures Commission and may not comply with the requirements of the Securities and Futures Commission. The Hong Kong Securities and Futures Commission also reminded investors to be wary of the risks of buying and selling virtual assets on platforms that are regarded as licensed virtual asset trading platform applicants (such applicants may not necessarily be licensed in the end and may have to end their business in Hong Kong) or unregulated virtual asset trading platforms (including any unregulated overseas virtual asset trading platforms).
Source: Jiemian News