Hong Kong’s ambitions to become a digital-asset hub are encountering challenges, as uncertainty looms over whether 11 crypto exchanges will secure full licences. The city’s Securities and Futures Commission (SFC) has flagged unsatisfactory practices at some of these “deemed-to-be-licensed” platforms during recent inspections, Bloomberg reported. Concerns include an over-reliance on a few executives for client asset custody and inadequate cybercrime safeguards. The SFC’s inspections are ongoing, and outcomes remain uncertain. The scrutiny intensifies as authorities aim to balance fostering a crypto centre with investor protection. The exchanges are barred from onboarding new clients until licensed, with full approvals expected by year-end. Currently, only two platforms, OSL and HashKey, hold full licences.