Hong Kong's Securities and Futures Commission (SFC) has announced that nearly a dozen cryptocurrency exchanges are on the verge of receiving their trading licenses. This development marks a significant milestone in Hong Kong's journey to establish a robust regulatory framework for the cryptocurrency industry.

According to the SFC's website, 11 applicants, including (link unavailable) and Bullish, have been deemed licensed as of June 1st. This designation indicates that these exchanges have met the necessary requirements to operate in Hong Kong. The SFC introduced new digital asset exchange regulations last year, setting a June 1st deadline for crypto exchanges to obtain a virtual asset trading platform license or achieve deemed licensed status.

Currently, only two crypto exchanges, HashKey Exchange and OSL Group, have received full licenses to operate in the special administrative region (SAR). However, the SFC's website shows that several other exchanges are close to receiving their licenses. Bloomberg reports that only licensed platforms or those deemed licensed will be allowed to operate in Hong Kong.

The SFC will issue actual permits to digital asset trading platforms that demonstrate consistent compliance with the regulations. This move is expected to boost investor confidence and promote a safe and secure trading environment.

In recent months, several crypto exchanges have withdrawn their applications for a virtual asset trading platform license in Hong Kong. OKX, HTX, and Bybit have all pulled out of the application process, citing various reasons. Binance, Coinbase Global, and Kraken did not submit applications.

Despite these setbacks, Hong Kong remains committed to establishing a thriving cryptocurrency industry. The SFC's regulatory framework aims to strike a balance between innovation and protection, ensuring that investors have access to safe and secure trading platforms.

As the cryptocurrency landscape continues to evolve, Hong Kong's regulatory approach is likely to serve as a model for other jurisdictions. The SFC's emphasis on compliance and investor protection is expected to promote a culture of transparency and accountability in the industry.

In conclusion, Hong Kong's crypto regulatory landscape is entering a new era of compliance and growth. The SFC's efforts to establish a robust regulatory framework are expected to promote a safe and secure trading environment, boosting investor confidence and driving innovation in the industry. As the cryptocurrency market continues to mature, Hong Kong's approach is likely to play a significant role in shaping the future of the industry.