Global: Hong Kong SFC Accepts Crypto License Application After Deadline

The Hong Kong Securities and Futures Commission (SFC) has accepted a digital asset exchange license application from Hong Kong Digital Asset Xchange (HKDAEx), despite the official deadline of May 31 having passed.

HKDAEx, a company based in Hong Kong and a member of the Hong Kong Financial Asset Exchange Group, submitted its application on August 27, according to the SFC’s records. The regulator has the authority to return the application if it is found to be incomplete or if there are unresolved fundamental issues.

HKDAEx has stated that its mission is to “connect physical assets with digital assets to improve liquidity, thereby increasing the value of physical assets and promoting the real economy.”

Hong Kong’s Continued Crackdown on Unlicensed Crypto Platforms

Since June 1, operating a virtual asset trading platform (VATP) in Hong Kong without a proper license has been classified as a criminal offense. While some applicants have received initial approvals from the SFC, they are not yet fully licensed. These “deemed-to-be-licensed” applicants are operating under a temporary framework designed for crypto firms that were already active in the region before the new licensing regime came into effect.

Currently, there are only two fully licensed virtual asset trading platforms in Hong Kong: OSL Digital Securities and Hash Blockchain.

Hong Kong’s Ambition to Become a Global Crypto Hub

Hong Kong has been actively working to position itself as a global hub for cryptocurrency, attracting investors and companies to its burgeoning digital assets industry. With significant advancements in digitalization and tokenization, the city is poised to become a key player in global free trade and a testing ground for emerging financial technologies.

According to the 2024 Henley Crypto Adoption Index, published by Henley & Partners, Hong Kong ranks second globally in cryptocurrency adoption, just behind Singapore. The city scored particularly high in economic factors and tax-friendliness, creating an environment that fosters the growth of the crypto industry through strong public interest and support.