The Hong Kong Securities and Futures Commission (SFC) has accepted a virtual asset license application from Hong Kong Digital Asset Xchange Limited (HKDAEx) despite the application being submitted after the 31 May deadline.

According to the SFC website, the license application was submitted on 27 August 2024.

HKDAEx is a member of the Hong Kong Financial Asset Exchange Group.

The group is comprised of several entities, including Hong Kong Financial Asset Exchange and Clearing Ltd, HKFAEx Group Ltd, and China International Assets and Equity of Artworks Exchange Limited.

Established in Hong Kong, HKDAEx provides exchange and clearing services for global digital assets, such as artworks, tea, and commodities.

The acceptance of HKDAEx’s application highlights the SFC’s ongoing efforts to regulate and oversee the growing digital asset market in Hong Kong.

Meanwhile, concerns persist about whether 11 other crypto exchanges that received provisional licenses will meet the criteria for full licensing.

These exchanges, including prominent names like Crypto.com and Bullish, are under scrutiny after recent SFC inspections revealed potential deficiencies in areas such as executive oversight and cybercrime risk management.

With only two platforms, OSL and HashKey, having secured full licenses to date, the regulatory landscape remains challenging.

The SFC has received 17 applications in the last quarter alone, but the stringent process has already led to the withdrawal of 12 applications, including those from Huobi HK and OKX.

The regulator previously share that it expects to issue full licenses to compliant firms by the end of 2024.

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