The Hong Kong Securities and Futures Commission (SFC) has just announced that it intends to conduct on-site inspections of local virtual asset trading platforms (VATPs) that have not yet completed their regulatory applications by the June 1 deadline.
On May 28, the SFC reminded crypto companies of the requirement to obtain a license before the deadline. After June 1, all local cryptocurrency trading platforms must be licensed or deemed licensed by the SFC.
Those that are deemed licensed will fall under a temporary framework designed for cryptocurrency companies already operating in the region prior to the implementation of the licensing regime.
Operating an unlicensed VATP in Hong Kong after June 1 will be considered an offense and the SFC will take direct action against these companies.
The SFC has stated it will conduct on-site inspections in the coming months to ensure that VATP applicants deemed to be licensed comply with regulatory requirements.