According to a report by Chinese media outlet SINA Finance, Ye Zhiheng, Executive Director of the Intermediary Department of the Hong Kong Securities and Futures Commission (SFC), stated that the new licenses will be announced soon. However, an exact date was not shared. Ye said they expect “good news” in the first quarter of 2025.

Ye also serves as Chairman of Hong Kong’s Fintech Advisory Group. According to their statements, last year the SFC inspected almost all platforms that applied for a license.

Applicants were informed in detail about the requirements they had to meet to obtain a license. Additionally, platforms were given sufficient time to respond to these requirements.

Although Ye Zhiheng stated that the new licenses are promising, he stated that it is not guaranteed that all 11 platforms that applied will receive a license. Regulatory red lines set by the Hong Kong SFC play an important role in license approval.

These red lines; It includes issues such as protecting investors, ensuring security standards and ensuring that operational processes comply with the regulatory framework.

Underlining that platforms must ensure the trust of investors and comply with standards in this process, Ye emphasized that the regulatory authority is working meticulously. It was stated that the Hong Kong SFC will not proceed with the approval process without ensuring that all applicants meet the licensing requirements.

At the end of December, the People’s Bank of China appreciated the active efforts of regulators in Hong Kong to issue more licenses for crypto trading platforms.

The bank stated that crypto assets are becoming increasingly important on a global scale and more countries are taking steps to regulate this sector. The People’s Bank of China also considered Hong Kong’s crypto licensing initiatives as a strategic move in this context.

Although Hong Kong is trying to speed up its licensing initiatives, it remains behind countries such as Singapore. Singapore issued twice as many crypto licenses in 2024 compared to the previous year, accelerating its growth in the sector. However, the licensing process appears to be slower in Hong Kong.

In October, Hong Kong SFC announced that a new batch of licenses would be approved by the end of 2024. However, this target was postponed to early 2025. Difficulties in the regulatory process and detailed review of procedures are among the main reasons for this delay.

Hong Kong treats crypto assets in two main categories in terms of licensing: security tokens and non-security tokens. Security tokens must comply with licensing standards, subject to the SFC’s regulatory framework.

Tokens that are not securities are considered within the scope of the country’s Anti-Money Laundering law and are subject to different regulations.

Ye Zhiheng stated that positive developments regarding new licenses may be shared in the next month or two. Hong Kong aims to support growth in the sector and increase global competitiveness by providing more licenses to crypto trading platforms.

Ye also stated that this licensing initiative aims not only to protect investors but also to open the door to innovative projects and technologies.

He emphasized that for continued growth in the crypto sector, regulatory frameworks must be improved and more platforms must operate on legal grounds.

Hong Kong plans to accelerate licensing processes to gain a stronger place in the crypto world and support the industry globally.

Although there are some difficulties in the process, it is expected that more platforms will receive licenses as of the first quarter of 2025 and the impact of this move on the industry will be felt. These steps could help Hong Kong move closer to its leadership goals in the crypto world.