DFX Labs Clears Hong Kong AML Requirements for Crypto License
Hong Kong-based crypto trading platform DFX Labs is close to getting a full license to operate in the region after securing approval from the Anti-Money Laundering and Anti-Terrorist Financing Ordinance (AMLO).
According to public records held by Hong Kong's Securities and Futures Commission (SFC), DFX Labs is “considered to be licensed to provide virtual asset services.”
However, while DFX Labs holds an active AMLO license, the platform is not yet authorized to offer crypto trading services. The record says:
“The applicant is deemed to be licensed to provide the virtual property services below. The SFC has not granted a license to the applicant under the AMLO. The license application is still pending decision.”
Timeline for Hong Kong crypto license
DFX Labs applied for a Hong Kong crypto license on December 27, 2023, with the company's chief operating officer, Simon Au Yung, as the lead applicant. The exchange was deemed licensed on June 1.
As shown above, the DFX Labs website remains an unlicensed virtual property platform and is not available to Hong Kong residents.
Related: Hong Kong invites international comments on future Web3 and digital assets
Hong Kong's effort to attract international startups
Three Hong Kong government bodies – the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK) and StartMap HK (SMUHK) – recently organized an event in Toronto to promote Ready to Move Offshore. Technology Hub for Canadian Crypto and Web3 Startups at the Toronto Conference.
Speaking at the event, Toronto ETO director Emily Moe emphasized startup-friendly regulations such as Canada's low taxes and Hong Kong's willingness to work with “pre-commercial specialist technology companies.” she added.
“There is an innovative mindset in Web3/virtual property developments. Fintech, health technology, green technology and property technology etc. are currently trending in Hong Kong and Asia.
In May, all crypto exchanges operating without a license were forced to shut down in Hong Kong.
Many crypto exchanges that applied for operating licenses eventually withdrew their applications. The list included well-known international players such as OKX, Huobi HK and Bybit, among others.
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