DFX Labs Moves Closer to Getting Full Crypto Trading License in Hong Kong
Summary:
Hong Kong-based cryptocurrency platform, DFX Labs, has obtained an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) license but awaits approval to offer crypto trading services. The company's COO, Simon Au Yeung, applied for the cryptocurrency license, which was deemed approved on June 1. However, DFX Labs' platform isn't available to Hong Kong residents as it doesn't yet hold a virtual asset platform license. This news comes amidst Hong Kong's efforts to attract global startups, providing a startup-friendly, low-tax environment.
Cryptocurrency trading platform DFX Labs, based in Hong Kong, has moved a step closer to obtaining a full operating license in the region after securing clearance from the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). According to records kept by the Securities and Futures Commission (SFC) in Hong Kong, DFX Labs has attained a "presumptive license for providing virtual asset service." Records detailing DFX Labs' license application in Hong Kong can be found in public sources provided by the Securities and Futures Commission. However, while DFX Labs currently possesses an active AMLO license, the platform has not yet received authorization to provide cryptocurrency trading services. The record explicitly states that "Whilst the Applicant is deemed licensed to offer the below mentioned virtual asset service, the SFC has NOT furnished the Applicant with a license under the AMLO. The licensing application remains unresolved."
DFX Labs lodged its application for the cryptocurrency license in Hong Kong on December 27, 2023, with the company's COO, Simon Au Yeung, listed as the principal applicant. The deemed license was awarded on June 1. The DFX Labs website does not yet have a license for its virtual asset platform and is therefore inaccessible to residents of Hong Kong.
This development is part of Hong Kong's effort to become a magnet for global startups. Hong Kong’s Economic and Trade Office in Toronto, Invest Hong Kong, and StartmeupHK recently held a promotional event in Toronto to showcase the readiness of their offshore tech hub for Canadian cryptocurrency and Web3 startups. Emily Mo, director of Toronto ETO, spoke at the event about the low-tax environment and startup-friendly regulations of Hong Kong, emphasizing the region’s openness to working with emerging specialist tech companies.
In May, all cryptocurrency exchanges operating without licenses in Hong Kong were obliged to cease trading. Numerous exchanges that had applied for operational licenses pulled their applications, including leading global players such as OKX, Huobi HK, and Bybit.
Published At
6/25/2024 1:39:21 PM
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