Cryptocurrency firms that are looking to establish in Hong Kong need to act quickly as there may be a backlog in applications reviews when the new licensing regime comes into play, Angelina Kwan, chief executive officer of financial services firm Stratford Finance and a former regulator of the Hong Kong Securities and Futures Commission (SFC), told Forkast.

Kwan, who helped write laws for the city’s crypto industry, said the new licensing program, set to take effect in June, is almost identical to that for traditional financial institutions. “The new introductions are: the listing committee of tokens that you’re going to offer to your clients, the walleting system and an external advisor.”

With the new licensing regime for virtual asset trading platforms, the SFC plans to require exchanges to apply for licenses that would allow retail investors to trade certain large-capitalization tokens. However, non-fungible tokens (NFT) will not be included in this specific license and there may likely be another consultation paper about tokenization, according to Kwan.

(BY TIMMY SHEN)