The Hong Kong Securities and Futures Commission (SFC) is poised to authorize more cryptocurrency exchanges to operate by year-end, as stated by CEO Julia Leung.

Leung noted in a recent interview that 11 applicants had successfully completed on-site reviews, anticipating progress in their licensing applications soon.

Last week, HKVAX became the latest exchange to gain regulatory approval, joining others like HashKey and OSL, which previously upgraded their licenses. Additionally, Bullish, the parent company of CoinDesk, is also among the applicants.

Leung's statement follows criticisms directed at Hong Kong's stringent regulatory environment, which some believe undermines the city’s aspirations to become a hub for cryptocurrency and Web3.

In a recent report, it was noted that some exchanges faced scrutiny for 'unsatisfactory practices,' with concerns including over-reliance on a few executives for overseeing client asset custody.

This development comes as significant names, such as Coinbase, withdrew their applications, citing various reasons including compliance regulations aimed at preventing mainland Chinese residents from accessing their platforms. Other exchanges like OKX and Bybit also exited the application process.

In light of events surrounding JPEX—a failed exchange that caused considerable financial losses to investors—the SFC has begun to improve transparency around licensing applicants and related practices. Leung mentioned that the commission is in consultation with the industry about regulations impacting cryptocurrency OTC and custody services.