Hong Kong will accelerate the approval of cryptocurrency trading platform licenses and plan to regulate stablecoins and custody services

Joseph Chan, Acting Secretary for Financial Services and the Treasury of Hong Kong, stated that Hong Kong is exploring ways to accelerate the licensing approval process for cryptocurrency trading platforms. The Securities and Futures Commission (SFC) plans to establish an "advisory group" early next year to provide support for licensed platforms. Since the introduction of the cryptocurrency trading platform licensing system in Hong Kong in June 2023, licenses have been issued to platforms such as OSL Exchange, HashKey Exchange, and HKVAX, allowing them to provide trading services for retail investors. In addition, the government is also promoting the regulation of stablecoins and plans to submit relevant bills to the Legislative Council this month, requiring all stablecoin issuers linked to legal tender to apply for a license from the Hong Kong Monetary Authority (HKMA). At the same time, the Hong Kong authorities also plan to propose regulatory recommendations for the licensing of cryptocurrency custody services next year, in order to further improve the regulatory framework of the cryptocurrency industry.