Share this article
Hong Kong Regulator Finds 'Unsatisfactory Practices' at Some Crypto Entities Seeking Full License: Report
As many as 11 entities are applicants for a full license with the regulator.
Updated Aug 26, 2024, 6:40 p.m. Published Aug 26, 2024, 7:06 a.m.
- Hong Kong's regulator has found "unsatisfactory practices" at some crypto exchanges seeking full licenses in the region after conducting on-site inspections.
- If this results in the cancellation of some temporary licenses handed out to the 11 applicants for full licenses, it may throw a spanner in the works of Hong Kong's pursuit of trying to become a global hub for crypto.
Hong Kong's Securities and Futures Commission (SFC) has found "unsatisfactory practices" at "some" of the cryptocurrency exchanges seeking a full license from it after conducting on-site inspections, Bloomberg reported on Thursday, citing people familiar with the situation.
"Some of the crypto firms are overly reliant on a handful of executives to oversee the custody of client assets, while others aren’t properly guarding against cybercrime risks," the report cited.
STORY CONTINUES BELOW
An SFC spokesperson told Bloomberg that while it had conducted some inspections which were still ongoing and subject to change, it doesn't comment on specific cases.
For platforms that are unable to remedy “critical deficiencies identified during on-site inspections, the SFC may opt to remove their deemed-to-be-licensed status or refuse their license applications,” the spokesperson added.
The SFC declined to add any more details to the statement given to Bloomberg.
The SFC has not named which entities had "critical deficiencies." As many as 11 entities have applied for a full license with the SFC, including Crypto.com, HKbitEX, PantherTrade and Bullish, the Bloomberg report said.
The applicants named did not immediately respond to CoinDesk's request for comment. Bullish is the owner of CoinDesk.
In late May, the SFC said it would conduct such on-site inspections of those crypto trading platforms which were interested in continuing to pursue their licensing applications. As many as 12 entities including OKX and ByBit withdrew their applications. OSL and HashKey are the only two fully licensed exchanges in Hong Kong.
The latest development may throw a spanner in the works of Hong Kong's pursuit of trying to become a global hub for crypto which saw it approve spot-crypto products earlier this year.
Read More: Hong Kong Will Inspect Offices of Crypto Platforms as Important Compliance Deadline Looms
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Argentina’s Central Bank to Allow Banks to Provide Crypto Services in 2026
Argentina’s central bank is reportedly drafting new rules to allow banks to offer customers digital asset-related services as early as April 2026.
What to know:
- The Central Bank of Argentina is considering lifting the ban on banks offering cryptocurrency services, potentially implementing new rules by April 2026.
- Argentina's shift towards a crypto-friendly policy follows the election of Javier Milei and aims to boost adoption amid economic challenges.
- Argentina is a leading country in cryptocurrency adoption, with a significant portion of transactions involving stablecoins to hedge against inflation.
Top Stories
