Hong Kong is seeing a surge in license applications to operate digital-asset exchanges, with 22 companies, including prominent players such as Bybit, OKX, and Crypto.com, entering the fray.
This move is part of the city’s efforts to position itself as a regulated hub for the cryptocurrency industry. Other notable applicants with significant trading volumes include Gate.io, HTX, and Bullish. The deadline set by Hong Kong for these applications was Feb. 29, and platforms that failed to apply will have to halt their services by the end of May.
Despite the interest from various entities, major exchanges like Binance, Coinbase, and Kraken have not applied for licenses, marking their absence from the list of applicants. This situation presents an opportunity for Hong Kong to gauge the attractiveness of its regulatory environment for digital assets amid competition from other jurisdictions.
Hong Kong’s virtual-asset rulebook introduced nine months ago, prioritizes investor protection. However, this approach may increase compliance costs, posing challenges for some businesses considering entry into this market. The city currently hosts two authorized digital-asset exchanges, HashKey Exchange and OSL Group, indicating a foundational structure for its crypto ecosystem.
It is important to understand that crypto transactions in Hong Kong include a significant volume of over-the-counter (OTC) trades, with an estimated $64 billion flowing into the city through such channels in the year through June, as reported by Chainalysis.
With that in mind, Hong Kong regulators are tightening controls on small shops facilitating crypto transactions and are exploring regulations for stablecoins and the possibility of allowing exchange-traded funds that invest in select cryptocurrencies.
Additionally, the government has ventured into digital finance by selling $750 million of digital green bonds using a tokenization platform provided by HSBC Holdings Plc.
With the event now days away, the globally regulated Forex and multi-asset broker will meet…
The emerging Web3 infrastructure initiative outlines an incentive-driven model connecting verified cooling performance with Efficiency…
The Stewardship Standard draws on more than three decades of hospitality leadership to help leaders…
Cybersecurity engineer Asante Babers, based in the United States, is encouraging people to review their…
Growing community highlights the power of education, consistency, and shared experiences while introducing a new…
Developer shares why memorable commercial spaces encourage connection and support local businesses. ORLANDO, FL, Aug 12,…