DFX Labs clears Hong Kong’s AML requirement for crypto license

Hong Kong-based crypto trading platform DFX Labs has come closer to attaining a full operational license in the region after bagging an Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) clearance.

Public records maintained by the Securities and Futures Commission (SFC) of Hong Kong show that DFX Labs is “deemed to be licensed for providing the virtual asset service.”

However, while DFX Labs holds an active AMLO license, the platform is not yet permitted to offer crypto trading services. The record stated:

“The Applicant is only deemed to be licensed for providing the virtual asset service below. The SFC has NOT granted a license to the Applicant under the AMLO. The application for his/her license is still pending determination.”

A timeline for Hong Kong crypto license

DFX Labs applied for the Hong Kong crypto license on Dec. 27, 2023, with Simon Au Yeung, the company’s chief operating officer, as the primary applicant. The exchange was deemed to be licensed on June 1.

As shown above, the DFX Labs website remains an unlicensed virtual asset platform and is unavailable for Hong Kong residents.

Related: Hong Kong invites global opinions on future of Web3 and digital assets

Hong Kong’s effort to attract global startups

Three Hong Kong government entities — ​The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK) and StartmeupHK (SMUHK) — recently co-hosted an event in Toronto to advertise its offshore ready-to-move technology hub for Canadian crypto and Web3 startups at a Toronto conference.

Speaking at the event, Toronto ETO director Emily Mo underscored existing startup-friendly regulations, such as lower taxes than in Canada and Hong Kong’s willingness to work with “pre-commercial specialist technology companies.” She added:

“There is a creative mindset on Web3/virtual assets developments. Fintech, health technology, green technology and property technology, etc, are trending in Hong Kong and Asia these days.”

In May, all crypto exchanges operating without a license in Hong Kong were forced to shut down .

Many crypto exchanges that had applied for an operational license eventually retracted their applications. The list included prominent global players such as OKX, Huobi HK and Bybit, among others.

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