Crypto Exchange Bybit Applies for License in Hong Kong
Crypto exchange Bybit has submitted an application for a license in Hong Kong to operate as a “virtual asset trading platform.” The application was filed through the entity Spark Fintech Limited, according to the Hong Kong Securities and Futures Commission’s website. Bybit’s application is currently being reviewed along with 14 other crypto firms, including OKX. Bybit sees obtaining a VATP license in Hong Kong as a significant milestone due to the city’s strategic location and established financial infrastructure.
Hong Kong Welcomes Crypto Firms
Unlike mainland China’s crackdown on crypto trading and mining, Hong Kong has embraced crypto firms. In June 2023, the city introduced its licensing regime for virtual asset trading platforms, allowing licensed exchanges to offer retail trading services. So far, Hong Kong has granted licenses to two platforms: HashKey and OSL. Additionally, the city is preparing for spot crypto exchange-traded funds (ETFs) and has reviewed its existing policy with regards to ETF requirements.
Potential for Spot Crypto ETFs in Hong Kong
Several fund companies have expressed interest in launching spot crypto ETFs in Hong Kong. The city’s regulators have published circulars addressing the requirements for spot crypto ETFs, paving the way for their introduction. Livio Weng, CEO of HashKey Exchange, stated that approximately 10 fund companies are exploring the possibility of launching spot crypto ETFs. Harvest Fund Management, a major Chinese asset manager, reportedly submitted an application for a spot bitcoin ETF through its Hong Kong arm.
Hot Take: Hong Kong Leads the Way in Crypto Regulation
Hong Kong’s welcoming approach to cryptocurrency regulation positions it as a leader in the industry. While neighboring mainland China imposes stricter regulations on crypto trading and mining, Hong Kong has created a favorable environment for crypto firms. The city’s licensing regime for virtual asset trading platforms and its preparation for spot crypto ETFs demonstrate its commitment to fostering innovation and growth in the crypto space. As more companies apply for licenses and explore new opportunities in Hong Kong, the region is poised to become a key player in the global crypto market.
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