According to sources quoted by Bloomberg, the Hong Kong Securities and Futures Commission conducted on-site inspections of some virtual asset trading platforms and found unsatisfactory behavior. It is unknown whether the relevant platforms will eventually obtain formal licenses. According to sources, some cryptocurrency companies are overly reliant on a small number of senior executives to oversee the custody of client assets, while others are not properly guarding against the risk of cybercrime. It is not clear which companies have not met the requirements of the Securities Supervision Commission. It is reported that the on-site inspections are still ongoing. A spokesperson for the Hong Kong Securities Supervision Commission said it would not comment on specific cases, but that the inspections are carried out to determine whether applicants comply with its requirements, with particular attention to the protection of client assets by applicants and the KYC process. For platforms that are unable to correct serious deficiencies identified during on-site inspections, the Hong Kong Securities Supervision Commission may choose to revoke their deemed licensing status or reject their license applications.