Xchange

The Hong Kong Securities and Futures Commission (SFC) has granted a digital asset exchange license to Hong Kong Digital Asset Xchange (HKDAEx) after the official deadline had already passed.
HKDAEx, a local crypto exchange, put in its <a href="https://www.sfc.hk/en/Welcome-to-the-Fintech-Contact-Point/Virtual-assets/Virtual-asset-trading-platforms-operators/Lists-of-virtual-asset-trading-platforms" rel="noopener noreferrer nofollow" target="_blank">application</a> on August 27, a solid three months after the May 31st cutoff date. This unexpected move has left many wondering what’s really going on behind the scenes at the SFC. Did they bend their own rules, or is there more to this story?
The regulators might still return the application if they think it’s incomplete or there are some basic issues that haven’t been sorted out yet.
To get things started, all Virtual Asset Trading Platforms (VATPs) need a license to operate in Hong Kong as of June 1, 2023. So far, only a handful of firms have managed to get through the hoops, and a bunch of applications are still in processing limbo.
Then there’s the “Crypto Travel Rule,” the big one. Any virtual asset transfer over HK$8,000 (around $1,000) has to come with a lot of paperwork. Service providers have to share all transaction data, no questions asked.&nbsp;
Meanwhile, the Hong Kong Monetary Authority (HKMA) has been laying down the law for stablecoin issuers since early 2024. They’ve set up a full regulatory regime that says:
<blockquote>
 “If you’re issuing fiat-referenced stablecoins, you need to be locally incorporated, have enough financial resources, and follow good governance standards.”
</blockquote>
The HKMA has even set up a regulatory sandbox. Only selected participants can join, and it’s a way to see who can hang in the big leagues under controlled conditions. 
This follows a public consultation that wrapped up in July, and now they’re getting ready to take a new proposal to the Legislative Council.
Custody is another hot topic. Back in February, the HKMA dropped new guidelines for digital asset custodians. They want stronger governance, better asset segregation, and tougher risk management practices.

Hong Kong grants crypto exchange license to HKDAEx post-deadline

Cryptopolitan_News

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