Bybit aims to acquire cryptocurrency license in Hong Kong

Cryptocurrency Exchange Bybit Seeks VASP License in Hong Kong

Cryptocurrency exchange Bybit has submitted an application for a Virtual Asset Service Provider (VASP) license in Hong Kong, as per regulatory filings. Bybit is one of the 14 applicants seeking approval from the Securities and Futures Commission (SFC) to provide services in Hong Kong. The application, filed on Jan. 31, states that Bybit intends to offer its services through Spark Fintech Limited in the region. The approval status and timeline for Bybit’s application remain uncertain, with other crypto businesses also awaiting regulatory clearance. Currently, only two companies, OSL Exchange and HashKey Exchange, have obtained a crypto trading license from the SFC. Bybit has not issued any public statements regarding its application at this time.

Bybit’s Expansion Plans in Hong Kong

In April 2023, Bybit expressed interest in expanding its services in Hong Kong and announced plans to establish its central Asian business there. The company intends to allocate a portion of its marketing, research, and development team to Hong Kong as part of this expansion. Bybit CEO Ben Zhou emphasized the importance of liquidity in the exchange sector and praised Hong Kong for its well-developed capital markets, high financial literacy levels, and informed investor base.

Debate Over Hong Kong’s Crypto Regulation

While some view Hong Kong’s regulatory approach favorably, not everyone in the crypto market agrees. Wang Yang, vice president of the Hong Kong University of Science and Technology, criticized the city’s cryptocurrency regulation, describing the current licensing system as burdensome and counterproductive. Yang coined the term “Licensed to Be Killed” to illustrate the challenges faced by licensed exchanges like OSL, which have experienced significant losses after obtaining regulatory approval to operate in the region.

Hot Take: Bybit Aims to Strengthen Presence in Hong Kong Crypto Market

Cryptocurrency exchange Bybit has applied for a Virtual Asset Service Provider (VASP) license in Hong Kong, signaling its intention to expand its services in the region. Bybit aims to tap into Hong Kong’s well-developed capital markets and high levels of financial literacy to attract a substantial number of informed investors. While the regulatory approval timeline for Bybit’s application is uncertain, the company joins a list of other crypto businesses awaiting clearance from the Securities and Futures Commission (SFC). However, there are differing opinions on Hong Kong’s crypto regulation, with some criticizing the existing licensing system as burdensome and potentially detrimental to licensed exchanges.