Your Guide to Recent Criticism of Hong Kong’s Cryptocurrency Licensing System 🇭🇰
Recently, Hong Kong Legislative Council member Wu Shuo shared criticism about Hong Kong’s cryptocurrency licensing system, emphasizing the negative impact it has on market confidence. Discover the latest developments and insights into the licensing requirements and major exchanges’ reactions.
Major Exchanges Withdraw Applications 📉
- Wu highlighted the series of withdrawals, including HKVAEX, IBTCEX, QuanXLab, Huobi HK, Gate.HK, OKX HK, and Bybit.
- Only 17 virtual asset trading platforms remain on the application list, with 11 companies withdrawing or returning their applications.
- The requirement to exclude mainland Chinese users poses challenges for traditional offshore exchanges, hindering compliance.
- OKX’s attempt to form an industry alliance against the requirement was unsuccessful.
- Potential for entities to update legal frameworks and reapply in the future, but may require branding changes.
SFC to Conduct On-Site Inspections 🕵️♂️
- The Hong Kong SFC plans to conduct on-site inspections of local virtual asset trading platforms pending regulatory applications after the June 1 deadline.
- All local crypto trading platforms must be licensed or “deemed-to-be-licensed” by the SFC post-deadline.
- Hong Kong introduces its first batch of ETFs focused on cryptocurrencies, potentially competing with US Bitcoin products.
- Market estimates forecast significant growth for Bitcoin and Ether funds in Hong Kong over the next few years.
- CEO projections suggest Hong Kong crypto ETFs will surpass $1 billion in assets by the end of 2024.
Hot Take: Navigate Hong Kong’s Evolving Crypto Landscape 🚀
Stay informed about the ongoing shifts in Hong Kong’s cryptocurrency regulatory environment and the implications for market players. Be proactive in understanding the latest developments and potential opportunities arising from these changes in the crypto industry.
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