The Hong Kong Securities and Futures Commission (SFC) is set to license an additional 11 virtual asset platforms before the year ends.

Recently, the SFC granted its third license to the Hong Kong Virtual Asset Exchange (HKVAX), joining OSL Exchange and HashKey Exchange.

SFC CEO Leung Fung-yee, in an interview with local media HK01, revealed that on-site inspections have already been conducted, and the platforms have been asked to make necessary adjustments to comply with regulatory standards.

Those that meet the requirements will be granted licenses in batches before the end of the year, while those that fail to comply will be disqualified.

Leung highlighted the regulator’s efforts to establish a framework for virtual asset trading, integrating tokenisation and Web 3.0 technologies.

The SFC’s 2024-2026 strategic priorities include boosting market competitiveness, institutional resilience, and driving financial transformation through technology and ESG integration.

The framework is expected to be completed by next year, and a new licensing regime for cryptocurrency over-the-counter (OTC) and custodial services is also in development, with industry feedback being sought.

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