According to Forkast News, Hong Kong is likely to license at least eight cryptocurrency companies by the end of the year.
The license will be issued as part of Hong Kong’s new crypto licensing regime, a Forkast News article points out. The information was stated by former Hong Kong Securities and Futures Commission (SFC) regulator and current CEO of financial services firm Stratford Finance, Angelina Kwan.
New licensing system
According to Kwan, many cryptocurrency companies are trying to establish operations in Hong Kong.Knowing this, the regulator creates a new license program It will come into force in June. Given the number of requests for licenses, Kwan estimates that at least eight companies will be eligible for licenses during the second half of this year.
On the most important aspect of securing a license, Kwan said:
“Internal controls are very important, by incorporating them into the policies and procedures that are followed in practice. Security is important, and so are wallet systems. Unless you have a really good system in place, you need to do it as part of the whole process, not in isolation.”
This rule requires all crypto exchanges to allow the trading of certain large tokens. On the other hand, non-fungible tokens (NFTs) are considered securities and are not within the scope of the new licensing regulations.
Hong Kong and crypto
After the FTX demise, Hong Kong started relying on regulation. Within months, city regulators announced that a new set of regulations he said would go into effect in June 2023.
According to a statement earlier this month, more than 80 cryptocurrency businesses are considering moving into Hong Kong, and state-owned banks in the region are also keen to work with cryptocurrency businesses.
Looking at Hong Kong’s current position in the cryptocurrency space, some experts see the advantage of Hong Kong’s strict cryptocurrency regulation.