The Hong Kong Securities and Futures Commission (SFC) is widely expected to approve more cryptocurrency exchanges by year’s end.
Julia Leung, chief executive officer of the SFC, said in a media interview that the regulatory body has 11 license applications under review and that some should be approved by Dec. 31.
Her comments come after HKVAX was recently approved to begin operating what would be a third cryptocurrency exchange in Hong Kong.
HashKey and OSL also have crypto exchange operating licenses in the city.
Hong Kong has a stated goal to become a cryptocurrency and web3 hub. Key to that goal is the approval of licensed crypto exchanges.
The city has been courting major crypto exchanges such as Coinbase Global (COIN), trying to get them to set-up shop in the city.
However, some critics claim that the market regulator in Hong Kong is moving too slowly when it comes to approving crypto exchange operating licenses.
For its part, the SFC says that it is trying to push the industry forward while guarding against cybercrime risks.
The regulator had a recent embarrassment after crypto exchange JPEX collapsed earlier this year, leaving more than 2,600 people in Hong Kong out about $200 million U.S.
More than 70 people have been arrested as part of a police investigation into the JPEX collapse but nobody has been charged in the case.
Police in Hong Kong have also raided and shutdown several crypto trading storefronts that were operating illegally and without a license from the SFC.
