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Hong Kong Opens Express Lane for Crypto Exchanges

Author: Content Editor
The Securities and Futures Commission (SFC) of Hong Kong has revealed a new streamlined licensing approach for virtual asset trading platforms (VATPs). This new framework replaces the previous two-phase assessment system with a single, comprehensive external evaluation. Under the new process, VATP applicants must first implement their operational infrastructure before undergoing an external assessment, with the SFC actively participating in the evaluation process. The aim of this change is to simplify the process of obtaining a license and encourage more exchanges to enter the market. The move comes after the SFC's decision in June 2024 to once again allow retail clients to trade cryptocurrencies, but with additional regulatory responsibilities and consequences for non-compliance. The introduction of this streamlined licensing approach reflects Hong Kong's efforts to strengthen its position as a virtual asset hub.

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