In today's digital age, the rise of cryptocurrency exchanges has become a hot topic in the financial field. However, it is not easy to obtain a stock exchange license in Hong Kong, a financial center. Crypto lawyers have said that the most difficult thing is to find a supervisor, which is just one of the many challenges. Let's unveil the mystery of the Hong Kong Stock Exchange license and explore the three major eligibility criteria.

First, let's look at the first eligibility criterion: capital strength. In Hong Kong, the stock exchange requires applicants to have strong capital strength to ensure that they are able to bear potential risks. For example, last year a company that applied for a Hong Kong Stock Exchange license was rejected due to insufficient capital strength. The company failed to provide sufficient proof of funds during the application process, which ultimately led to the failure of the license application. Therefore, capital strength is one of the primary considerations for obtaining a Hong Kong Stock Exchange license.

Secondly, the second eligibility criterion is compliance supervision. As an international financial center, Hong Kong has particularly strict compliance requirements for financial institutions. Applicants must meet the regulatory requirements of the Hong Kong Securities and Futures Commission and other regulatory authorities to ensure compliance and transparency of their business. A cryptocurrency exchange that has successfully obtained a license has won the recognition of regulatory authorities by establishing a sound compliance system and monitoring mechanism and strictly implementing anti-money laundering and anti-terrorist financing systems.

Finally, the third qualification standard is technical security. With the rapid development of financial technology, it is particularly important to ensure the technical security of the trading platform. A qualified cryptocurrency exchange must have a strong network security protection system to ensure the security of trading data and user assets. There was an exchange that was hacked due to a technical loophole, resulting in heavy losses of user assets, and was eventually ordered by the regulatory authorities to suspend operations for rectification. Therefore, technical security is one of the indispensable conditions for obtaining a Hong Kong Stock Exchange license.

In summary, in order to obtain a stock exchange license in Hong Kong, in addition to the three major qualification standards of capital strength, compliance supervision and technical security, there are also many challenges to face, such as finding a suitable supervisor and establishing a solid business model. Crypto lawyers said that in order to successfully obtain a license, the applicant institution needs to consider all aspects and make comprehensive preparations from capital, compliance to technology. Only in this way can it stand out from the fierce competition, obtain a Hong Kong Stock Exchange license, and open a new chapter in the financial field.

In this era of information explosion, it is crucial to maintain keen insight and comprehensive preparation. I hope that the content of this article can inspire you and give you a deeper understanding of the application process and conditions for the Hong Kong Stock Exchange license. I hope that every colleague who aspires to enter the financial field can sail to the other side of success in this brilliant financial ocean!

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.

120Btc.com: The Hong Kong Securities and Futures Commission issued a consultation summary on the supervision of virtual asset trading platforms on the 23rd, and stated that the "Guidelines for Virtual Asset Trading Platform Operators" will take effect on June 1 this year. Platform operators who are currently or intend to provide virtual asset trading-related services in Hong Kong must apply for a license from the Hong Kong Securities and Futures Commission.

It should be noted that according to the latest guidelines of the Hong Kong Securities and Futures Commission, virtual asset trading platforms currently operating in Hong Kong need to apply within 9 months after June 1 and obtain approval from the Hong Kong Securities and Futures Commission before they can continue to operate in Hong Kong.

According to the guidelines, virtual asset trading platforms need to meet investor protection, paid-up capital, anti-money laundering, private key management, platform business scope, avoidance of conflicts of interest and network security, etc., before they can obtain a license.

Three key points to obtain a license

Wu Wenqian, who once worked (and is currently) as a compliance partner of TKX Capital in the Legal and Compliance Department and a practicing lawyer in the Hong Kong High Court, told China Media Cailianshe that there are three key points for a virtual asset trading platform to obtain a Hong Kong license:

 It is necessary to have a capital injection of no less than HK$5 million and to maintain liquid assets for no less than 12 months of operating expenses

 Two local Hong Kong responsible supervisors (ROs) are required to serve as executive directors of virtual asset service providers (VASPs), and these two ROs need to have three years of experience in the virtual asset industry, and other executives also need to do background checks for the Hong Kong Securities and Futures Commission.

 Follow external assessment requirements, including governance and staffing, listing procedures, anti-money laundering procedures, market monitoring, etc.

Wu Wenqian believes that the most difficult part of obtaining a virtual asset trading license in Hong Kong is to recruit executives who meet regulatory requirements. He pointed out that Hong Kong attaches great importance to the compliance of exchanges, and specifically requires that the responsible supervisors of exchanges have three years of industry experience, preferably a compliant exchange.

At present, only two virtual asset trading platforms have obtained the relevant licenses for virtual asset trading platforms issued by the Hong Kong Securities and Futures Commission, namely HashKey PRO, which obtained the license in 2020, and OSL Exchange, which obtained the license in 2022.

Not yet approved to open retail services

On the other hand, whether Hong Kong will open retail trading of virtual assets has also attracted attention.

The Hong Kong Securities and Futures Commission pointed out in its consultation summary on the 23rd that it will implement the proposal to allow licensed virtual asset trading platforms to provide services to retail investors, but the summary also reminded that the Securities and Futures Commission has not approved any virtual asset trading platform to provide services to retail investors, and most of the existing virtual asset trading platforms accessible to the public are not regulated by the Securities and Futures Commission.

Gary Tiu, head of regulatory affairs at BC Technology Group, the parent company of OSL trading platform, previously stated that Hong Kong's laws and regulations on virtual assets are still being improved. At present, there are no truly large-scale tokenized or digital financial products in the world. The specific products that can be provided to retail investors still need to be communicated and studied with the regulators.