CryptoMediaClub
Wednesday, June 25, 2025
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis
No Result
View All Result
CryptoMediaClub
No Result
View All Result
Home All news

11 Hong Kong Crypto Exchange Applicants Face Uncertainty After Inspections

22.08.2024
A A
0
120
VIEWS
ShareShare

11 Hong Kong cryptocurrency exchanges, which initially received provisional approvals, are now under increased regulatory scrutiny.

The city’s Securities and Futures Commission (SFC) conducted on-site inspections of these “deemed-to-be-licensed” platforms and found several practices that fell short of regulatory expectations, Bloomberg reported, citing sources familiar with the situation.

The inspections revealed that some crypto firms are overly dependent on a limited number of executives for the custody of client assets, raising concerns about their ability to manage these responsibilities effectively.

Some Exchanges Lacked Measures to Protect Against Cybercrime

Additionally, some exchanges were found lacking in robust measures to protect against cybercrime.

The SFC has not disclosed which specific firms failed to meet the standards, and the inspections are still ongoing, leaving the possibility of further findings.

Among the 11 exchanges under review are well-known global players such as Crypto.com and Bullish, alongside local platforms like HKbitEX, PantherTrade, and Matrixport HK.

The SFC said that these inspections are part of their effort to ensure that applicants adhere to stringent requirements, particularly concerning the safeguarding of client assets and adherence to know-your-client (KYC) processes.

The SFC warned that platforms unable to address critical deficiencies identified during inspections could face the removal of their “deemed-to-be-licensed” status or have their license applications rejected outright.

HONG KONG CRYPTO PUSH HITS SNAGS
Hong Kong’s digital asset ambitions are encountering headwinds.
Inspections of 11 exchanges with initial approval exposed some operational gaps.
The path to full licensing isn’t guaranteed, adding uncertainty to the city’s Web3 goals.… pic.twitter.com/zPtP14nrK1

— Crypto Town Hall (@Crypto_TownHall) August 22, 2024

Licensing crypto exchanges is a key component of Hong Kong’s broader Web3 strategy, which was first outlined in 2022.

The initiative aims to revitalize the city’s reputation as a major international financial center, following years of political upheaval.

However, the cautious approach taken by regulators has not yet resulted in significant changes in terms of personnel shifts or capital inflows, raising questions about the effectiveness of the strategy.

As of now, only two crypto platforms, OSL and HashKey, hold full licenses in Hong Kong.

The SFC expects to issue full licenses to successful applicants by the end of 2024.

Meanwhile, 12 companies, including Huobi HK and OKX, have already withdrawn their applications.

On March 28, 2024, HKVAEX, suspected to be affiliated with Binance, withdrew its license application.

Subsequently, on May 14, IBTCEX, QuanXLab, and Huobi HK followed suit, followed by Gate.HK on May 22 and Bybit (Spark Fintech Limited) on May 31.

Legislator Raises Concern Over Crypto Licensing System

Just recently, Hong Kong Legislative Council member voiced criticism against Hong Kong’s cryptocurrency licensing system, citing its impact on market confidence.

The lawmarker attributed the withdrawals to the requirement imposed by the Hong Kong SFC, which requires applicants for virtual asset trading platform licenses to commit to not having mainland Chinese users in any region.

The requirement poses a challenge for traditional offshore exchanges, making it difficult for them to comply.

OKX attempted to form an industry alliance to oppose the requirement but was ultimately unsuccessful.

Industry insiders have mentioned that the entities that have withdrawn their applications could potentially update their legal frameworks or entities and reapply in the future.

Meanwhile, Hong Kong has launched its first batch of ETFs focused on cryptocurrencies, marking potential competition for the popular Bitcoin products in the United States.

The post 11 Hong Kong Crypto Exchange Applicants Face Uncertainty After Inspections appeared first on Cryptonews.

Share9Tweet6ShareSharePin2

Related Posts

Crypto Price Prediction Today 24 June – SHIB, TON, PEPE
All news

Crypto Price Prediction Today 24 June – SHIB, TON, PEPE

25.06.2025
0

The crypto sector is once again buzzing with renewed price optimism on news of a ceasefire between Israel and Iran...

Read moreDetails
Russian Crypto Mining Chief: Bitcoin Could Hit $130k Before Summer Is Out

Russian Crypto Mining Chief: Bitcoin Could Hit $130k Before Summer Is Out

25.06.2025
Senate GOP Unveils Bold Crypto Market Structure Principles – Here’s What Could Change

Senate GOP Unveils Bold Crypto Market Structure Principles – Here’s What Could Change

25.06.2025
Bitcoin Rebounds to $105,000 After Truce Claimed in Middle East – What’s Next?

Bitcoin Rebounds to $105,000 After Truce Claimed in Middle East – What’s Next?

24.06.2025
Dogwifhat Rockets 20% as Bitcoin Breaches $106K – Is a $1.00 Breakout Next?

Dogwifhat Rockets 20% as Bitcoin Breaches $106K – Is a $1.00 Breakout Next?

24.06.2025
Load More
Next Post
Sun Pump Outperforms Pump.fun and Boosts TRON Profitability

Sun Pump Outperforms Pump.fun and Boosts TRON Profitability

0 0 votes
Рейтинг статьи
Subscribe
Notify of
guest
guest
0 комментариев
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Recommended

Binance Poland to Regulate Deposit and Withdrawal Procedures for EU Compliance

Binance Poland to Regulate Deposit and Withdrawal Procedures for EU Compliance

5 months ago
Polygon Recovers Discord Server After $145K Hack, Preps for POL Token Launch

Polygon Recovers Discord Server After $145K Hack, Preps for POL Token Launch

10 months ago
TON Blockchain Back Online Following Second Outage

TON Blockchain Back Online Following Second Outage

10 months ago
South Korean Lawmakers Still at Loggerheads Over Crypto Tax as Deadline Looms

South Korean Lawmakers Still at Loggerheads Over Crypto Tax as Deadline Looms

7 months ago

Categories

  • All news
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
No Result
View All Result

Highlights

Number of XRP holders almost doubled within six months, overtaking Solana

Bitcoin Rebounds to $105,000 After Truce Claimed in Middle East – What’s Next?

Dogwifhat Rockets 20% as Bitcoin Breaches $106K – Is a $1.00 Breakout Next?

Turkey Slaps Strict New Crypto Oversight: Mandatory Source Checks, $3K Daily Stablecoin Limit

South Korea Expands Cryptocurrency Initiatives and Strengthens Market Regulation

Why Is Crypto Up Today? – June 24, 2025

Trending

Crypto Price Prediction Today 24 June – SHIB, TON, PEPE
All news

Crypto Price Prediction Today 24 June – SHIB, TON, PEPE

25.06.2025
0

The crypto sector is once again buzzing with renewed price optimism on news of a ceasefire between...

Russian Crypto Mining Chief: Bitcoin Could Hit $130k Before Summer Is Out

Russian Crypto Mining Chief: Bitcoin Could Hit $130k Before Summer Is Out

25.06.2025
Senate GOP Unveils Bold Crypto Market Structure Principles – Here’s What Could Change

Senate GOP Unveils Bold Crypto Market Structure Principles – Here’s What Could Change

25.06.2025
Number of XRP holders almost doubled within six months, overtaking Solana

Number of XRP holders almost doubled within six months, overtaking Solana

24.06.2025
Bitcoin Rebounds to $105,000 After Truce Claimed in Middle East – What’s Next?

Bitcoin Rebounds to $105,000 After Truce Claimed in Middle East – What’s Next?

24.06.2025
  • All news
  • Altcoins
  • Bitcoin
  • Blockchain
  • Ethereum
  • NFT
  • Analysis
Editor: cryptomediaclub.com@gmail.com
Advertising: digestmediaholding@gmail.com

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

No Result
View All Result
  • All news
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFT
  • Blockchain
  • Analysis

Disclaimer: Information found on CryptoMediaClub is those of writers quoted. It does not represent the opinions of CryptoMediaClub on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

© 2023 Crypto News. All Rights Reserved

wpDiscuz