Bloomberg: Some Hong Kong digital asset platforms have deficiencies, and if not corrected, they may
According to Bloomberg citing informed sources, after several Hong Kong digital asset platforms that were deemed licensed obtained preliminary approval in June, the Hong Kong Securities and Futures Commission found some non compliant practices during on-site inspections of the platforms. Some companies overly rely on a small number of senior personnel to supervise the custody of customer assets, while others fail to properly prevent cybercrime risks.
It is currently unclear which companies have not met the requirements of the China Securities Regulatory Commission. Insiders revealed that the inspection work is still ongoing and may undergo changes. These inspection results add to the challenges faced by officials in promoting Hong Kong as a prosperous cryptocurrency hub.
There are a total of 11 licensed Hong Kong cryptocurrency exchanges, including international platforms such as Crypto.com and Bullish, as well as HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin, and Matrixport HK.
A spokesperson for the China Securities Regulatory Commission stated that the institution does not comment on specific cases, and the review process is to determine whether the applicant has complied with its requirements, particularly regarding the protection of client assets and the Know Your Customer (KYC) process. The spokesperson added that for platforms that are unable to rectify significant deficiencies identified during on-site inspections, the China Securities Regulatory Commission may choose to cancel their status as licensed or reject their license applications.
Currently, only two cryptocurrency platforms, OSL and HashKey, have been granted full licenses in Hong Kong. During the licensing process, 12 companies have withdrawn their applications, including Huobi HK, OKX, Bybit, and VAEX.
