Hong Kong to speed up crypto licensing as competition intensifies

Hong Kong has pledged to speed up the licensing process for crypto trading platforms as the region continues its drive to become a cryptocurrency hub.

Joseph Chan, Acting Secretary for Financial Services and the Treasury (FSTB), said at the parliament today that the Securities and Futures Commission will facilitate a “swift licensing process” and establish a “consultative panel” that’s expected to commence early next year for licensed trading platforms.

Hong Kong has rolled out the welcome mat for crypto firms. In June 2023, it officially started a crypto licensing regime for crypto trading platforms, allowing licensed exchanges to offer retail trading services. The regulator has granted  licenses to OSL Exchange, HashKey Exchange and HKVAX.

In addition to crypto trading, the government is also prepared to regulate stablecoins, having released consultation documents for fiat-referenced stablecoin issuers. FSTB plans to introduce a relevant legislative bill to the Legislative Council “within this month,” Chan said in response to questions from Johnny Ng, a Hong Kong lawmaker. According to the consultation , the proposal would require all FRS issuers to obtain a license from the HKMA.

Meanwhile, the authorities are also focusing on crypto custody services. Chan said regulators will introduce a proposal to license crypto custodians next year.