TechFlow reported on August 22 that the Hong Kong Securities and Futures Commission (SFC) released its Q2 2024 report, highlighting significant progress in digital asset regulation. During the quarter, nine new entities were added to the SFC's warning list of suspected unlicensed virtual asset trading platforms. As of the publication date, the total number of such suspected platforms reached 42, while only two—OSL and HashKey—are currently licensed virtual asset trading platforms.
In response, OSL CEO Cui Song told TechFlow, "Holding a license is not just about regulatory compliance, but also about ensuring the highest standards of security and investor protection." He added that while the official SFC website indicates application fees for licenses amount to several thousand Hong Kong dollars per item, the cumulative costs behind meeting the required compliance, capital, and operational standards can reach tens of millions of U.S. dollars. The licensing process is complex and stringent, involving establishing a legal and compliance team, investing in security and technical resources, implementing segregated fund management and risk control mechanisms, setting up audit and reporting systems, as well as conducting ongoing compliance training and education.
