Sources: The Hong Kong Securities and Futures Commission found regulatory deficiencies in its inspection of 11 virtual asset platforms

ChainCatcher news reports, citing sources from Bloomberg, that after the Hong Kong Securities and Futures Commission (SFC) conducted on-site inspections of several virtual asset trading platforms, unsatisfactory behaviors were found among them, and it remains unclear whether the relevant platforms will ultimately obtain formal licenses.

Sources indicate that some cryptocurrency companies overly rely on a few senior executives to supervise the custody of customer assets, while others have not taken adequate measures to prevent cybercrime risks. It is currently unclear which companies have not met the SFC's requirements.

It is reported that the on-site inspections are still ongoing. A spokesperson for the Hong Kong SFC stated that they would not comment on specific cases, but the inspections are conducted to determine whether applicants comply with their requirements, with particular attention to the protection of customer assets and the know-your-customer processes. For platforms that cannot rectify serious deficiencies found during the on-site inspections, the Hong Kong SFC may choose to revoke their status as licensed applicants or reject their license applications.