SFC Approves Four VATPs and Outlines Licensing Conditions After Inspections

The Securities and Futures Commission (SFC) has granted
licences to four virtual asset trading platforms (VATPs) under its expedited
licensing process.

The development follows the completion of risk-based on-site
inspections for deemed-to-be-licensed VATP applicants, a programme introduced
in June 2024.

VATPs Licensed with Restricted Scope

Along with the three previously approved providers, the Hong
Kong SFC has granted licences to four additional VATP providers: Hong Kong
Digital Asset EX Limited, Accumulus GBA Technology Co., Limited, DFX
Labs Company Limited, and Thousand Whales Technology.

The licensed VATPs will operate with a restricted business
scope until they address the issues raised during the SFC’s inspections. They
must also conduct a vulnerability assessment and penetration test, with
satisfactory results from an independent third party.

“We have been proactively engaging with VATPs’ senior
management and ultimate controllers which helps drive home our expected
regulatory standards and expedite our licensing process for VATPs,” said Eric
Yip, the SFC’s Executive Director of Intermediaries.

“We aim to strike a balance between safeguarding the
interests of investors and facilitating continuous development for the virtual
asset ecosystem in Hong Kong.”

In addition to the three already approved, the Hong Kong SFC today added four newly approved virtual asset VATP providers, namely Hong Kong Digital Asset EX Limited, Accumulus GBA Technology (Hongkong) Co., Limited, DFX Labs Company Limited, and Thousand Whales Technology (BVI).…

— Wu Blockchain (@WuBlockchain) December 18, 2024

SFC Issues Circular on Licensing

The SFC will oversee the second-phase assessment of VATPs in
collaboration with the platforms and their external assessors. Restrictions on
business scope will be lifted after the SFC is satisfied with the second-phase
assessment results.

A circular issued today (Wednesday) outlines the licensing
process and offers further guidance on the second-phase assessment.

This article was written by Tareq Sikder at www.financemagnates.com.
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