Hong Kong’s Securities Futures Commission (SFC) is preparing to issue more licenses to crypto exchanges by the end of this year. According to SFC CEO Julia Leung, 11 Virtual Asset Trading Platforms (VATPs) are currently on the regulator’s list of potential licensees, with the first round of on-site reviews already completed. The licenses will be issued in batches to ensure better compliance from exchanges.

A total of 16 companies are awaiting decisions on their VATP applications. Of these, 11 are operating under the status of “deemed to be licensed,” though the SFC discourages traders from using these platforms until they receive official approval.

Leung’s announcement coincides with the release of the SFC’s 2024-2026 roadmap, which focuses on advancing crypto regulations, promoting tokenization of real-world assets, and further exploring blockchain technology.

Despite Hong Kong’s ambitions to become a global hub for crypto, it has faced criticism for its slow progress. Currently, retail crypto investors in the region can only purchase four cryptocurrencies, reflecting the cautious approach of regulators.

This update follows the recent approval of HKVAX as the third officially licensed crypto exchange in Hong Kong, joining OSL and HashKey. The SFC has intensified its regulatory efforts after the collapse of Dubai-based JPEX in 2023, which defrauded over 2,500 Hong Kong residents. The scandal prompted stricter policing of unlicensed crypto firms and the creation of a task force to address illicit activities in the space.