Hong Kong Crypto Exchanges Face Hurdles in Licensing Process
Shiva Ganesh
The Securities and Futures Commission (SFC) has identified issues such as inadequate cybersecurity measures and over-reliance on a small group of executives for asset custody
Many exchanges have received preliminary approvals but must address these deficiencies to secure full operational licenses
Exchanges with provisional status are currently barred from acquiring new clients until they obtain full licenses
The licensing process is expensive, with costs potentially reaching up to $20 million, making it challenging for smaller firms
Currently, only two platforms, OSL and HashKey, hold full licenses, but more are expected to be granted by the end of 2024 if regulatory requirements are met