Hong Kong Streamlines Licensing, Forms Consultative Panel for Virtual Asset Platforms

Hong Kong's Securities and Futures Commission (SFC) today unveiled its ambitious plan to foster a robust and thriving fintech ecosystem in the city.

In a keynote speech opening Fintech Week 2024 – the ninth edition of the city's flagship fintech event – on Monday, Eric Yip, the SFC's executive director of intermediaries, outlined key initiatives aimed at balancing market development with investor protection.

A major focus for the SFC is the development of Hong Kong's virtual asset market. The regulator is committed to streamlining the licensing process for virtual asset trading platforms (VATPs). The SFC expects to grant the first batch of formal licenses to deemed-to-be-licensed VATP applicants by the end of this year, Yip said.

To foster industry collaboration and address evolving challenges, the SFC is establishing a consultative panel for all licensed VATPs. This panel will provide a platform for industry representatives to share insights and contribute to the SFC's policymaking process. The panel is expected to launch in early 2025.

Yip also noted that the SFC remains supportive of tokenization initiatives and is actively involved in Project Ensemble, a collaborative effort led by the Hong Kong Monetary Authority (HKMA). This project aims to establish the necessary infrastructure for tokenized asset settlement, setting industry standards and driving innovation in the financial sector.

He also emphasized the SFC's commitment to a pragmatic and proactive approach to regulation. The regulator said it will continue to enhance its investor protection efforts through proactive monitoring systems and public alerts, while working closely with other regulatory agencies to ensure the integrity of the market.