Exclusive: Hong Kong Attracts Major Players in Crypto Industry
The Hong Kong SFC Securities and Future Commission has seen 22 significant players in the crypto industry apply for a license to operate as a virtual asset exchange in the city. This move comes after the Legislative Council of Hong Kong passed an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) in December 2022, introducing a licensing regime for Virtual Asset Service Providers (VASPs).
The Big Names
– Mega giants like Crypto.com, OKX, and many more have applied for a crypto license in Hong Kong
– This signals a major shift in the regulatory landscape of the crypto industry in the city
– The approval process for these applications will involve stringent compliance with SFC requirements
Hong Kong Ends License Application for Crypto Exchanges
Starting from February 29, Hong Kong has stopped accepting license applications from cryptocurrency exchanges, making it the last day for applying. The Securities and Futures Commission (SFC) of Hong Kong has announced that all non-compliant cryptocurrency exchanges in the city must cease operations by May 31, 2024.
Transition to Licensed Platforms
– Investors currently using unlicensed platforms are encouraged to switch to licensed ones
– Only licensed platforms can allow trading of Bitcoin and Ether, with more cryptocurrencies under review
– The SFC will release a list of licensed crypto exchanges as of June 1, 2024
Only Two Exchanges Permitted Till This Date
So far, the SFC has only granted licenses to two companies: OSL Exchange on 15/12/2020 and HashKey Exchange on 09/11/2022. The 22 applicants on the list are not guaranteed approval and will undergo rigorous compliance checks before potentially being approved.
HTX (Huobi) Withdraws Hong Kong Crypto License Application
Cryptocurrency trading platform HTX, formerly known as Huobi Global, surprised the crypto community by withdrawing its license application in Hong Kong. The withdrawal was for HBGL Hong Kong Limited, a subsidiary of HTX in the city.
– HTX withdrew its application just three days after submission, leaving the industry speculating on the reasons behind this decision
– As applicants await approval, the industry is eagerly anticipating which companies will be granted licenses for operating in Hong Kong
Hot Take: Stay Tuned for Further Developments
The crypto industry in Hong Kong is undergoing significant changes with the influx of major players applying for licenses. As the SFC continues to review applications and set stringent compliance standards, the future landscape of crypto exchanges in the city remains dynamic and evolving. Stay tuned for more updates on which companies will secure licenses and how the regulatory environment in Hong Kong unfolds in the coming months.
Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content. Cino’s contributions serve as a valuable compass for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With a commitment to precision, he empowers informed decision-making within the ever-evolving crypto sphere.
