Hong Kong's Securities & Futures Commission (SFC) has given a stern warning to all unlicensed virtual asset trading platforms (VATPs): exit the city by June 1, 2024, or face legal consequences. The SFC emphasizes that all VATPs operating in Hong Kong must either be licensed or deemed-to-be-licensed under the Anti-Money Laundering Ordinance (AMLO).

The deadline for crypto exchanges to file for a license was February 29, and now that date has passed. The SFC has given a clear ultimatum: either obtain a license or cease operations within three months. This means that all unlicensed crypto exchanges must terminate operations immediately.

Of the 22 exchanges that submitted license applications, many withdrew before the deadline. Six exchanges, including global giants OKX and Huobi HK, left the Hong Kong market in May alone. However, Gate.HK, a Hong Kong-based exchange, chose to restructure its platform to comply with Hong Kong's regulatory standards.

Hong Kong regulators recognize the importance of embracing the technical capabilities of Web 3.0 to create clear boundaries, increase productivity, and prevent risks. To navigate the complexity of the Web3 network effectively, Hong Kong needs a digital currency that can efficiently manage its central bank digital currency. Chun suggests an initial money supply of $26 million to $260 million for this purpose.