Digital Asset Exchange Bybit Applies For Hong Kong VATP License
Digital asset exchange Bybit has submitted an application for a Virtual Asset Trading Operator (VATP) license in Hong Kong. The application was filed through Spark Fintech Limited, according to Hong Kong’s Securities and Exchange Commission (SFC) website. Bybit’s application brings the total number of firms seeking the license to 14.
Bybit Follows in OKX’s Footsteps
OKX, another digital asset exchange, also applied for a VATP license in November 2023. This trend is due to Hong Kong becoming an attractive location for Web3 firms. OKX’s Chief Commercial Officer, Lennix Lai, expressed optimism about the move and stated that the exchange aims to work with the city’s vision of becoming a global player and a leading web3 hub. Currently, only two cryptocurrency companies have obtained the license: OSL Exchange and HashKey Exchange.
Hong Kong’s Web3 Drive
Hong Kong is positioning itself as a Web3 hub and has implemented a licensing regime with guidelines for various sectors. Unlike mainland China’s anti-crypto stance, Hong Kong regulators have taken a different approach to cryptocurrencies. They recently announced that they will accept applications for spot cryptocurrency ETFs and released strict requirements for firms. This has led many analysts to believe that Hong Kong could be a test bed for potential policy reversals in China regarding cryptocurrencies.
Hot Take: Hong Kong Embracing Web3 Opportunities
Hong Kong’s move to embrace Web3 technologies and provide regulatory clarity is attracting digital asset exchanges like Bybit and OKX. By applying for VATP licenses, these exchanges are positioning themselves to tap into the retail market in Hong Kong, which has the potential for significant revenue. Furthermore, Hong Kong’s pro-crypto stance and its efforts to become a global web3 hub could pave the way for other jurisdictions to adopt similar approaches. As the crypto industry continues to evolve, Hong Kong’s regulatory framework and market opportunities make it an attractive destination for crypto businesses.
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