Hong Kong Will Inspect Offices of Crypto Platforms as Important Compliance Deadline Looms
Summary
Hong Kong's Securities and Futures Commission (SFC) will conduct on-site inspections of crypto trading platforms pursuing licensing applications before the June 1, 2024 deadline. After this date, operating without a license will be a criminal offense. Only two entities are currently licensed, with 18 applications pending and 11 withdrawn or removed. The SFC will scrutinize compliance with regulatory requirements, particularly in safeguarding client assets and know-your-client processes. The SFC does not expect unlicensed platforms to market services or onboard new retail clients. The recent withdrawals of applications may be part of the SFC's efforts to ensure compliance before the deadline.
