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Homepage > News > Business > Hong Kong to issue more VASP permits as South Korea tightens rules A few years ago, Hong Kong was regarded as the friendliest jurisdiction for digital asset businesses. However, a $200 million local exchange scam forced regulators to become more stringent, and now, it’s gradually licensing exchanges as it balances investor protection and promoting innovation. The city’s regulator says it’s set to issue licenses for nearly a dozen virtual asset service providers (VASPs) by the end of the year. Elsewhere in East Asia, South Korea is reviewing its stablecoin laws and is consulting with other jurisdictions, including the European Union and Japan. Hong Kong to license 11 VASPs When JPEX collapsed with HK$1.6 billion (US$225 million) in investor funds a year ago, the Securities and Futures Commission (SFC) came under fire for failing to protect Hong Kong investors. This led to an overhaul in its treatment of digital assets, starting with a public listing of VASP license applicants “in light of public demand.” It also revised its licensing regime for VASPs, requiring them to obtain a new permit to serve Hong Kong investors. Haskey and OSL became the first two exchanges under the new regime to acquire this license, and a week ago, HKVAX joined them. The SFC intends to license over ten more exchanges by the end of the year, CEO Julia Leung revealed in a recent interview with local media outlet HK01. Leung revealed that the watchdog had conducted on-site visits and reviews of 11 applicants, and she expects to issue them licenses this year. While she didn’t reveal the applicants’ identities, the SFC website shows they include Hong Kong Digital Asset EX Limited, Whalefin Markets, Panthertrade Limited and DFX Labs Limited. Bullish, the exchange launched by EOS parent company Block.one in…

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Filed under: News - @ October 16, 2024 5:12 am