Hong Kong Financial Secretary Paul Chan Mo-po stated that the one-year transition period for the Virtual Asset Service Providers (VASP) licensing regime in Hong Kong is coming to an end. All Hong Kong VASPs must submit their license applications before February 29, 2022, or they will have to cease operations in Hong Kong.
Background:
Bybit Exchange applies for Hong Kong Virtual Asset Trading Platform (VASP) license.
The Hong Kong government officially opened the application for the VASP license on June 1, 2021. Since late September, they have been gradually disclosing relevant lists such as licensed platforms, platforms that have applied for licenses, and closed platforms.
Hong Kong Financial Secretary: VASPs must submit applications before 2/29
According to the report by Finance Association News, Hong Kong Financial Secretary Paul Chan Mo-po stated yesterday (February 2) that the one-year transition period for the VASP licensing regime in Hong Kong is coming to an end. All Hong Kong VASPs must submit their license applications before February 29, 2022.
It is understood that the Securities and Futures Commission (SFC) of Hong Kong previously stated that the period from June 1, 2023, to May 31, 2024, is the transition period for license applications. If the SFC considers that the existing virtual asset trading platforms meet the conditions to be granted licenses (license applications must be submitted before February 29, 2024), these virtual asset trading platforms will be automatically treated as licensed from June 1, 2024, until their license applications are approved, withdrawn, or rejected.
Source: Securities and Futures Commission of Hong Kong
Current status of VASP license applications in Hong Kong (2 approved, 14 under review)
According to the information provided by the SFC, the virtual asset trading platforms that have officially obtained licenses from the SFC are HashKey Exchange and OSL Exchange.
To enhance investment security, the SFC requires both platforms to conduct due diligence before listing virtual assets for trading, ensuring that the assets meet the criteria for token inclusion and obtaining approval from the SFC. Sufficient information must also be disclosed to investors.
There are currently 14 companies awaiting VASP license review, including OKX, Bybit, PantherTrade Limited, BGE, HKbitEX, HKVAX, VDX, Meex, and others.
It is worth mentioning that apart from Bitget, which previously stated that they would not apply for a Hong Kong license, well-known platforms such as Binance, Huobi, and Gate.io, which were rumored to take action, have not appeared in the list published by the SFC.
Further reading:
Securities and Futures Commission of Hong Kong exposes over 10 cryptocurrency industry players who claimed to “apply for licenses” but did not follow through, including Binance, OKX, Huobi, and more.
Submitted applications by virtual asset service providers. Image source: Securities and Futures Commission of Hong Kong.
Related reports:
Three prospects for Hong Kong’s Web3 policy after the implementation of the exchange license.
Hong Kong 01 reveals: JPEX’s multinational registration suspected to be a “shell company,” false advertising related to licenses.
Securities and Futures Commission of Hong Kong calls out JPEX: No regulatory license, providing false statements… raises six doubts.