SFC Approves 4 VATPs and Outlines Licensing Circumstances After Inspections

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SFC Approves 4 VATPs and Outlines Licensing Circumstances After Inspections


The Securities and Futures Fee (SFC) has granted
licenses to 4 digital asset buying and selling platforms (VATPs) underneath its expedited
licensing course of.

The event follows the completion of risk-based on-site
inspections for deemed-to-be-licensed VATP candidates, a program launched
in June 2024.

VATPs Licensed with Restricted Scope

Together with the three beforehand authorized suppliers, the Hong
Kong
SFC has granted licenses to 4 extra VATP suppliers: Hong Kong
Digital Asset EX Restricted, Accumulus GBA Know-how Co., Restricted, DFX
Labs Firm Restricted, and Thousand Whales Know-how.

The licensed VATPs will function with a restricted enterprise
scope till they tackle the problems raised throughout the SFC’s inspections. They
should additionally conduct a vulnerability evaluation and penetration take a look at, with
passable outcomes from an unbiased third social gathering.

“We’ve been proactively participating with VATPs’ senior
administration and supreme controllers which helps drive house our anticipated
regulatory requirements and expedite our licensing course of for VATPs,” stated Eric
Yip, the SFC’s Government Director of Intermediaries.

“We intention to strike a stability between safeguarding the
pursuits of traders and facilitating steady improvement for the digital
asset ecosystem in Hong Kong,” he added.

SFC Points Round on Licensing

The SFC will oversee the second-phase evaluation of VATPs in
collaboration with the platforms and their exterior assessors. Restrictions on
enterprise scope will probably be lifted after the SFC is glad with the second-phase
evaluation outcomes.

A round issued as we speak (Wednesday) outlines the licensing
course of and presents additional steering on the second-phase evaluation.

This text was written by Tareq Sikder at www.financemagnates.com.

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