The Securities and Futures Commission (SFC) announced today that it has granted Hong Kong VATP licences to four virtual asset trading platform (VATP) applicants. This was achieved through its swift licensing process designed for handling deemed-to-be-licensed applicants.
This decision follows the completion of risk-based on-site inspections conducted by the SFC after launching its inspection programme in June.
The four applicants for VATP are Accumulus GBA Technology (Hong Kong) Co., Limited, DFX Labs Company Limited, Hong Kong Digital Asset EX Limited, and Thousand Whales Technology (BVI) Limited.
As part of their licensing conditions, the approved platforms will operate within a restricted scope of business. This will continue until they address rectification actions, based on feedback from the on-site inspections.
Additionally, they must conduct a vulnerability assessment and penetration test through an independent third party, ensuring satisfactory results.
Dr. Eric Yip, the SFC’s Executive Director of the Intermediaries Division, emphasised the importance of proactive engagement with the VATPs’ senior management and ultimate controllers to reinforce regulatory standards and speed up the licensing process.
He highlighted the goal of balancing investor interest with fostering the growth of Hong Kong’s virtual asset ecosystem.
Building on the success of directly engaging with VATP leadership, the SFC will extend this approach when the VATPs undertake their second-phase assessments with external assessors.
The SFC will oversee the process through a tripartite collaboration involving the VATPs and their assessors.
Once the second-phase assessments meet the SFC’s standards, the restrictions on business scope will be lifted. For clarity, the SFC issued a circular outlining a detailed roadmap for the licensing process with additional guidance on the second-phase assessments.
The SFC will consolidate the inspection findings and issue additional guidance in early 2025. The SFC will provide guidance on the licensing process for new corporations applying to operate a VATP.
The remaining Hong Kong VATP licences applications are currently under review through the same expedited licensing process.