The Hong Kong Securities and Futures Commission celebrates its 35th anniversary this year. Under the premise of maintaining market fairness, it also has four major strategic priorities. In an interview with Hong Kong 01, SFC CEO Leung Fung-yee said that the development of the regulatory system for virtual asset trading platforms, support for the tokenization of traditional products, and the use of regional chains and Web 3 basic technologies will "complete the entire framework at least next year."
The SFC announced its strategic priorities for 2024 to 2026, including maintaining market resilience, enhancing the global competitiveness and attractiveness of Hong Kong's capital market, leading the transformation of the financial market with technology and ESG, and improving institutional resilience and operational efficiency.
In order to lead the transformation of the financial market, Liang Fengyi said that we must embrace financial innovation, promote the development of the regulatory system for virtual asset trading platforms, support the tokenization of traditional products, use regional chains and Web 3 basic technologies, and promote the establishment of a responsible and secure fintech ecosystem. "It will take at least next year to complete the entire framework."
11 applicants deemed to have been granted licenses are expected to make new progress by the end of the year
Regarding the Virtual Asset Trading Platform (VATP), Leung Fung-yee said that the SFC has issued the third license to the Hong Kong Virtual Asset Exchange (HKVAX). The other two licensed companies include OSL Exchange and HashKey Exchange.
In addition, there are 11 platforms that are considered as applicants for licensing. Liang Fengyi pointed out that the first phase of on-site review has been carried out and requirements have been made for these applicants to make rectifications. The goal is to have new progress before the end of the year, including licensing in batches. "Applicants who do not meet the requirements will lose their eligibility for licensing, and applicants who meet the requirements will be conditionally licensed."
Regarding cryptocurrency over-the-counter (OTC) services, Liang Fengyi pointed out that the Securities and Futures Commission has sought industry opinions on the formulation of a new licensing system for cryptocurrency OTC services and cryptocurrency custody services.