Hong Kong stopped accepting license applications from cryptocurrency exchanges from February 29, and any trading platforms that do not comply will have to close their local operations by May 31, 2024.
Compliance deadline
Hong Kong’s Securities and Futures Commission (SFC) said cryptocurrency exchanges that fail to submit license applications by February 29 must cease operations by the end of May 31, 2024. The SFC advised investors to prepare early and migrate to licensed platforms.
License Status
Hong Kong’s SFC granted official licenses to two cryptocurrency trading operators: OSL Digital Securities on December 15, 2020 and HashKey Exchange on November 9, 2022. Twenty-two cryptocurrency trading platforms have applied for licenses, including four under the SFC’s previous opt-in regime.
enforcement action
During the cleanup period, Hong Kong will restrict non-compliant exchanges’ ability to operate and close all marketing activities. The SFC will publish a list of licensed cryptocurrency exchanges from June 1, 2024, but procurement of licenses for all listed exchanges is not guaranteed.
Approval of future transactions
Licensed exchanges can engage retail investors to trade Bitcoin and Ethereum. The SFC is reviewing a variety of altcoins and stablecoins for transaction approval.
BitForex communication issues
Hong Kong-based cryptocurrency exchange BitForex has been facing communication issues, with users reporting problems accessing their accounts and assets not showing up on their dashboard. The exchange’s X account has not been updated since May 2023 and users have been blocked from accessing the website.