Hong Kong SFC Extends Swift Licensing Process to New Applicants of Virtual Asset Trading Platform (VATP) Licences, Issued 4 Licences in 2024 December to Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX & Thousand Whales Technology
19th January 2025 | Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has extended the swift licensing process to all new applicants of Virtual Asset Trading Platform (VATP) licences. In 2024 December, Hong Kong SFC issued 4 Virtual Asset Trading Platform (VATP) licences under the swift licensing process to Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX & Thousand Whales Technology. Hong Kong SFC (16/1/25): “The Securities and Futures Commission (SFC) today announced that all new virtual asset trading platform (VATP) applicants can now seek licences under its swift licensing process (Note 1). This new licensing approach requires VATP applicants to implement their policies, procedures, systems and controls before conducting an external assessment on these measures. The SFC will become a party to the engagement to supervise the overall external assessment process. This extension is made in light of the effectiveness of the SFC’s direct engagement and communication with deemed-to-be-licensed VATP applicants on the regulatory standards during its risk-based on-site inspections of all such applicants … … To provide further guidance to new VATP applicants, the SFC issued a circular today (Note 2). The SFC also published the findings of its risk-based on-site inspections to provide more clarity on its expected regulatory standards (Note 3).”
“ Hong Kong SFC Extends Swift Licensing Process to New Applicants of Virtual Asset Trading Platform (VATP) Licences, Issued 4 Licences in 2024 December to Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX & Thousand Whales Technology “
Notes:
- The SFC granted licences to four VATPs on 18 December 2024 under the swift licensing process. Please refer to the SFC’s press release dated 18 December 2024.
- The circular provides additional guidance to new corporations applying for VATP licences. All VATP applicants which submit licence applications after 18 December 2024 should refer to this circular.
- Details of the inspection findings are set out in the Circular to Licensed Corporations, SFC-licensed Virtual Asset Service Providers and Associated Entities – Findings from inspections on deemed-to-be-licensed virtual asset trading platform applicants and expected standards of conduct for virtual asset trading platform operators dated 16 January 2025 and its appendices.
Hong Kong SFC Issues 4 Virtual Asset Trading Platform (VATP) Licences under Swift Licensing Process, 4 VATP Applicants are Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX & Thousand Whales Technology
19th December 2024 – The Hong Kong Securities and Futures Commission (SFC) has issued 4 Virtual Asset Trading Platform (VATP) licences under the swift licensing process. The 4 VATP applicants are Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX & Thousand Whales Technology. Hong Kong SFC (18/12/24): “The Securities and Futures Commission (SFC) today granted licences to four virtual asset trading platform (VATP) applicants under its swift licensing process for handling deemed-to-be-licensed VATP applicants (deemed applicants) (Note 1). This came after the SFC completed risk-based on-site inspections on all deemed applicants following the introduction of its inspection programme in June this year (Note 2). As a licensing condition, they can operate on a restricted scope of business after completing their rectification actions in response to the SFC’s on-site inspection feedback (Note 3). They are also required to perform a vulnerability assessment and a penetration test through an independent third party with satisfactory results. n the light of the effectiveness of directly engaging with the senior management and ultimate controllers of VATPs, the SFC will extend this approach when the VATPs engage an external assessor to conduct their second-phase assessment. Specifically, the SFC will supervise the whole second-phase assessment process through a tripartite engagement together with the VATPs and their external assessors, and will uplift the restriction on business scope after the second-phase assessment is completed to the SFC’s satisfaction. In this connection, the SFC published a circular today to set out a clear roadmap for VATPs on the licensing process and provide more guidance on the second-phase assessment (Note 4).
Dr Eric Yip, the SFC’s Executive Director of Intermediaries: “We have been proactively engaging with VATPs’ senior management and ultimate controllers which helps drive home our expected regulatory standards and expedite our licensing process for VATP. We aim to strike a balance between safeguarding the interests of investors and facilitating continuous development for the virtual asset ecosystem in Hong Kong.”
Notes:
- These four VATP applicants are Accumulus GBA Technology (Hongkong) Co., Limited, DFX Labs Company Limited, Hong Kong Digital Asset EX Limited, and Thousand Whales Technology (BVI) Limited. The remaining applications are being considered under the same swift licensing process.
- Please refer to the SFC press release dated 12 June 2024.
- The SFC will consolidate the inspection findings and provide additional guidance in early 2025.
- The SFC will provide additional guidance on the licensing process of new corporations applying for a licence to operate a VATP in early 2025.
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