In May, Hong Kong’s Securities and Futures Commission (SFC) will release guidance on the licensing framework for crypto. Bloomberg reported that SFC CEO Julia Leung announced the ongoing consultation process for the regulatory framework for crypto entities in the city has received over 150 responses so far.
The new regulatory framework will be effective from June 1, and it will mandate crypto platforms to register with the authorities in the city.
Licensed exchanges can then offer cryptocurrency trading of major cryptocurrencies, such as Bitcoin and Ethereum, to retail traders. Hong Kong aims to become a financial hub for cryptocurrency in Asia, with two exchanges already offering crypto trading services under the supervision of the Hong Kong SFC.
Several other exchanges might follow suit, as the city’s banking sector also offers support for crypto firms. However, some offshore exchanges have started restricting Hong Kong users due to regulatory demands.
Bitget, for instance, has announced it will no longer provide services for Hong Kong users and that its Hong Kong users must transition to its subsidiary, BitGetX HK, which will apply for a license under the Hong Kong Virtual Asset Service Provider (VASP) regime.
