Hong Kong’s Securities and Futures Commission (SFC) will release guidelines on the crypto licensing framework in May.
The CEO of SFC in Hong Kong, Julia Leung, made the announcement at an event reported by Bloomberg on April 27. According to her, there is an ongoing consultation process for the regulatory framework for crypto entities in the city and there have been more than 150 responses to date.
The regulator said the new regulatory framework will come into effect on June 1. This would require crypto platforms to register with city authorities.
The law allows licensed exchanges to offer cryptocurrency trading of major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) to retail traders.
Meanwhile, this is part of Hong Kong’s efforts to become a cryptocurrency financial center in Asia. Two exchanges – Hashkey and OSL – already offer crypto trading services overseen by the Hong Kong SFC.
But more exchanges may follow, especially as the city’s banking sector also supports crypto companies. Several crypto companies are scrambling for new banking partners after the US banking crisis.
Binance CEO Changpeng ‘CZ’ Zhao previously said more money would move to Hong Kong as banks in the region support crypto.
BitGet launches a platform for Hong Kong users
Crypto exchange Bitget said it would no longer provide services to users in Hong Kong due to the new regulatory requirements.
According to the exchange, the Hong Kong users should switch to its subsidiary, BitGetX HK.
“BitgetX Hong Kong intends to apply for the license under the Hong Kong Virtual Asset Service Provider (VASP) regime and will operate under the transitional arrangement to be created under the Hong Kong VASP regime until the license application is approved.”
Meanwhile, Wu Blockchain reported that other offshore exchanges have also started restricting users in Hong Kong due to regulatory requirements.
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