The Hong Kong Securities and Futures Commission plans to approve a batch of new crypto licenses by the end of this year. So far, there are 11 crypto platforms being considered for licenses.

In an interview with news outlet Hong Kong 01, CEO of the China Securities Regulatory Commission, Liang Fengyi, announced that the SFC will be giving out licenses in batches to Virtual Asset Trading Platforms.

The SFC has recently issued three licenses for crypto exchanges operating in the region, including the Hong Kong Virtual Asset Exchange, OSL Exchange and HashKey Exchanges.

Apart from the three licensed platforms, 11 other platforms have applied for an SFC-issued licenses and are currently awaiting approval.

Liang Fengyi explained that regulators have carried out the first phase of on-site reviews and have asked applicants to make the necessary corrections.

She stated that the SFC aims to make significant progress on regulating virtual assets by the end of the year, by issuing a batch of licenses for VATPs.

“Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally,” said Fengyi.

As part of their 2024-2026 strategy, Liang Fengyi said that Hong Kong regulators will promote the development of regulations for virtual asset trading platforms, support the tokenization of traditional products, and using regional chains and web3 basic technologies.

“The entire framework will be completed at least next year,” she said.

In regards to cryptocurrency over-the-counter services, Liang Fengyi pointed out that the CSRC has created a new licensing system for crypto OTC custody services to receive feedback from industry players.

In mid Sept. 2024, Hong Kong’s Securities and Futures Commission began working together with the Customs and Excise Department issuing licenses for over-the-counter crypto trading services. At the time, crypto platforms in Hong Kong struggled to get licenses due to not meeting government standards on client asset management and failure to properly anticipate cybersecurity risks.

On Sept. 30, ZA Bank became the first virtual assets bank in Hong Kong to gain a license from the SFC after a year-long review process.

Licenses have become vital for crypto platforms operating in Hong Kong as financial regulators have tightened restrictions on unlicensed exchanges and the development of a regulated crypto ecosystem.