Hong Kong is on the verge of officially licensing 11 cryptocurrency exchanges, a year after the Securities and Futures Commission (SFC) proposed new regulatory requirements. This move is in line with Hong Kong’s strategy to become a global hub for digital assets.
Among the 11 exchanges that are close to receiving official licenses and integrating into Hong Kong’s crypto market are Crypto.Com and Bullish. The SFC has stated that these exchanges are “deemed to be licensed” pending the fulfillment of all regulatory requirements.
Hong Kong is committed to creating a safe market for investors within its jurisdiction. To achieve this, the city will carefully review licensing applications to ensure that only compliant companies are approved. In a press release on May 28, the SFC stated:
“The exchanges will receive their complete permits after the SFC verifies continued compliance with its decree.”
The other exchanges that make up the 11 applicants include PantherTrade, DFX Labs, xWhale, Accumulus, and YAX. Bybit and OKX have dropped their license applications, while Binance, the world’s largest crypto exchange, did not apply.
Notably, US-based Coinbase Global and Kraken also did not apply for permits, although the SFC granted a grace period until June 1 for crypto exchanges to obtain full licenses.
Hong Kong’s goal is to establish itself as a global digital asset hub by the fourth quarter of 2022. This includes increasing the number of authorized exchanges and introducing Bitcoin and Ethereum exchange-traded funds (ETFs). The city has also developed a regulatory framework for stablecoins and digital bonds on tokenization platforms.
However, Hong Kong faces stiff competition from financial hubs like Singapore and Dubai in its quest to become a global digital asset hub.
Regarding the SFC directive, around two dozen crypto exchanges submitted their permit applications by the February deadline. However, some of these exchanges withdrew as the deadline approached. Hong Kong-based Gate.HK stated that it needed to make significant changes to its trading platform to meet the stringent requirements.
Currently, only two companies, Hashkey Exchange and OSL Group, have obtained complete permits to operate as trading platforms for digital assets in Hong Kong.
Source: Cryptopolitan (by Enacy Mapakame)
