Hong Kong-based cryptocurrency trading platform DFX Labs close to licensing

Hong Kong-based cryptocurrency trading platform DFX Labs is set to obtain a full operational license in the region after receiving Anti-Money Laundering and Counter-Terrorism Financing (AMLO) authorization ).

Public records held by the Hong Kong Securities and Futures Commission (SFC) show that DFX Labs is “deemed to be authorized to provide a virtual asset service.”

Public registry of DFX Labs license applications in Hong Kong. Source: Securities and Futures Commission

However, although DFX Labs holds an active AMLO license, the platform is not yet authorized to offer cryptocurrency trading services. The file stated:

“The Applicant is only deemed to be authorized to provide the Virtual Asset Service hereunder. The SFC did not grant a license to the applicant under the AMLO Act. The license application is still awaiting a decision.

Hong Kong Cryptocurrency Licensing Timeline

DFX Labs applied for a cryptocurrency license in Hong Kong on December 27, 2023, with Simon Au Yeung, the company’s chief operating officer, as the lead applicant. The exchange was deemed authorized on June 1.

Warning from DFX Labs for Hong Kong residents. Source: DFX Laboratories

As noted above, the DFX Labs website remains an unlicensed virtual asset platform and is not available to Hong Kong residents.

about: Hong Kong seeks global opinions on the future of Web3 and digital assets

Hong Kong’s efforts to attract global startups

Three Hong Kong government entities – the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK) and StartmeupHK (SMUHK) – recently co-hosted an event in Toronto to announce their move-in readiness. offshore projects A technology hub for Canadian startups in… Cryptocurrencies and Web3 at the Toronto conference.

Speaking at the event, ETO Toronto Director Emily Mo highlighted current startup-friendly regulations, such as lower taxes compared to Canada and Hong Kong’s willingness to work with “companies specialized pre-commercial technologies”. She added:

“There is a creative mindset when it comes to Web3/virtual asset development. Fintech, health tech, green tech, real estate tech, etc. are becoming popular in Hong Kong and Asia these days.

In May, all cryptocurrency exchanges operating without a license in Hong Kong were forced to close.

Several cryptocurrency exchanges that had applied for an operating license eventually withdrew their applications. The list included leading global players such as OKX, Huobi HK, Bybit and others.

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