June 1st, an important node, marks the official launch of the licensing system for virtual asset dealers in Hong Kong, and exchanges need to apply for licenses. This move will have a profound impact on Hong Kong's digital currency market and has attracted widespread attention from the industry and investors. Let's explore the background, impact and future development of this new regulation.

At a time when the digital currency market is booming, Hong Kong, as an international financial center, is not only an important financial hub in Asia, but also a core area for trading of various assets. On June 1st, the licensing system for virtual asset dealers in Hong Kong was officially launched. This move aims to regulate market order, protect the rights and interests of investors, and enhance market transparency and stability. Exchanges need to apply for licenses, which means that more compliant and reliable trading platforms will emerge in the future, providing investors with a safer and more transparent trading environment. What changes will the implementation of this new regulation bring to the Hong Kong digital currency market? Let's discuss it together.

First of all, the introduction of the licensing system for virtual asset dealers in Hong Kong will strengthen supervision and enhance market transparency. In the past, there were regulatory loopholes and risks in the digital currency market, and investors often faced problems of information asymmetry and opaque transactions. With the licensing system, exchanges need to apply for licenses and will be subject to stricter supervision, including fund security and transaction transparency. This will effectively reduce market manipulation, insider trading and other illegal behaviors, enhance investor confidence, and promote the healthy and orderly development of the market.

Secondly, the implementation of the new regulations will promote the compliance process of the digital currency market. As global supervision becomes stricter, the digital currency market needs the participation of more compliant trading platforms to ensure the safety of funds and legal and compliant operations. The requirement for exchanges to apply for licenses will prompt more trading platforms to standardize their own operations, comply with regulatory requirements, strengthen user identity verification and risk management, thereby effectively preventing illegal activities such as money laundering and fraud, and maintaining market order.

In addition, the implementation of the licensing system will also enhance the international competitiveness of the digital currency market. As an international financial center, Hong Kong has attracted the attention of many international investors and institutions. By establishing a sound regulatory system and market order, Hong Kong will further consolidate its position in the digital currency field, attract more high-quality projects and capital inflows, and promote market innovation and development. The requirement for exchanges to apply for licenses will attract more compliant exchanges to enter Hong Kong, provide investors with more diversified investment options, promote healthy market competition, and promote industry development.

In summary, the licensing system for virtual asset traders in Hong Kong officially came into effect on June 1, and exchanges need to apply for licenses. This move will bring a more standardized, transparent and stable development environment to the Hong Kong digital currency market. The implementation of the new regulations will strengthen supervision, promote market compliance, enhance international competitiveness, and bring more opportunities and protection to investors and market participants. As competition in the global digital currency market becomes increasingly fierce, Hong Kong's licensing system will become a highlight of the market and lead the future development direction of the digital currency market. Let us wait and see, and witness a new chapter in the Hong Kong digital currency market together!

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to BlockBeats today, it has been widely rumored on the Internet that "it will be completely legal for Hong Kong residents to freely buy and sell cryptocurrencies on June 1 this year". After consulting relevant people, BlockBeats has learned that the virtual asset service licensing system originally scheduled to be implemented on March 1 this year in Hong Kong will be implemented in June. The final files and rules still need to wait for the official release of the files.

The Legislative Council of Hong Kong passed the amendment to the anti-money laundering and terrorist financing system in the third reading last December, which will establish a virtual asset service provider licensing system. After the new system takes effect, those engaged in the operation of virtual asset exchanges must apply for a virtual asset service provider (VASP) license from the Hong Kong Securities and Futures Commission. Relevant persons must meet the appropriate person criteria and comply with the provisions of the Anti-Money Laundering Ordinance on combating money laundering and terrorist financing.

Before the new system was implemented, only OSL Digital Securities Limited and Hash Blockchain
Limited obtained licenses for cryptocurrency trading platforms in Hong Kong. The two companies need to transition to the new regulatory system within the prescribed transition period.

According to previous reports, financial services companies in Hong Kong are rushing to prepare so that retail customers can trade virtual assets in the coming months. The Hong Kong government issued a statement in December last year stating that the licensing system for virtual asset service providers will be extended to June 1, which will help the industry have enough time to apply for a license or register in accordance with the regulatory system.

Hong Kong has recently actively embraced cryptocurrencies. Hong Kong Financial Secretary Paul Chan said at the POWER Hong Kong Web3 Innovator Summit in January that Hong Kong is at a "golden new starting point" in terms of financial development related to Web3 and virtual technology, and under the new licensing system for virtual asset service providers, it is believed that a certain degree of market recognition can be provided for virtual asset exchanges.