Crypto exchanges operating in Hong Kong are not required to apply for a virtual asset trading platform (VATP) license. This license is being issued by the city’s Securities & Futures Commission (SFC). Failure to do as stated the exchanges will have no other choice but to depart their premises from Hong Kong within the next three months.
These tough decisions have been put into action because of the many misdeeds that are happening within crypto exchanges. It was also stated that by May 31, exchanges that do not have all the required documents will have to cease operations. This includes exchanges whose applications were not acceptable by the authorities.
As per the Feb 26 report, a number of crypto exchanges have already applied for VATP, exchanges like OKX, Bybit, Crypto.com and the Binance-linked HKVAX.
Following some of last year’s reports, exchanges like jPEX and Hounax, some of the most recognized exchanges within the region of Hong Kong, collapsed.
This was after allegations of Ponzi scheme operations. Great losses happened whereby an estimated amount of over $180 million was lost in the process. That was not all, around 145 victims lost $18.9 million in the Hounax scam as well. Authorities froze some funds that were directly linked to JPEX and Hournax.
However, only two exchanges, OSL and Hashkey, have so far registered and received their VATP licenses. This great move however will ensure that exchanges are registered and eligible for working, making them more trustworthy to users.
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