Hong Kong urges crypto investors to check platform status as licencing deadline looms

Hong Kong’s top financial regulator reiterated the deadline for crypto trading platforms to submit their license applications, urging investors to check their regulatory status on March 1.

The Securities and Futures Commission said today in a notice that investors should only trade on licensed trading platforms. The regulator has required all crypto trading platforms in Hong Kong to submit license applications by Feb. 29, or they will need to close down their businesses in the region by May 31.

The SFC advised investors to act swiftly if they trade on platforms that do not appear on either the “list of licensed virtual asset trading platforms” or the “list of virtual asset trading platform applicants.” The regulator urged these investors to “make preparations early,” such as by closing their accounts. 

In June 2023, Hong Kong officially started its crypto licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. Hong Kong has granted such licenses to two platforms — namely HashKey and OSL.

The SFC is officially reviewing applications from 14 crypto firms, including OKX and Bybit, according to the regulator’s website. HKVAEX, a crypto platform reportedly linked to Binance, applied for the same license on Jan. 4, according to the SFC’s list of applicants.

This guidance is part of the regulatory body’s broader effort to clamp down on unregulated trading platforms. Last week, Christopher Hui, Secretary for Financial Services and the Treasury, wrote in a blog post that the local government will soon publish a consultation on a proposed regulatory framework for over-the-counter crypto trading platforms as risks mount.