June 5, 2024
By Sharan Kaur Phillora
The Hong Kong Securities and Futures Commission (SFC) has granted initial approvals to 11 cryptocurrency exchanges, marking a significant step towards issuing the first full virtual asset trading platform (VATP) licenses since 2022. This development signals the city’s continued efforts to establish itself as a leading crypto hub.
Here’s what we know:
Among the approved exchanges, Crypto.com stands out as the largest, initially founded in Hong Kong and now headquartered in Singapore. It is notable as the only exchange among the top 20 in global trading volume still pursuing a license in Hong Kong, according to data from CoinGecko.
Another prominent name on the list is Bullish, a firm with strong ties to both Gibraltar and Singapore, and recent acquirer of CoinDesk. CoinDesk announced plans to host its major Consensus crypto conference in Hong Kong next year, indicating a deepening commitment to the city’s crypto scene.
This wave of approvals comes under new regulations established last year, which required exchanges wishing to operate beyond June 1 to be deemed licensed while their full applications were pending. Exchanges not seeking a license by this deadline were mandated to cease operations.
The deeming status is a temporary arrangement allowing exchanges to continue functioning while their full license applications are reviewed and finalized. This interim measure was critical as it enabled ongoing business operations without interruptions during the regulatory transition.
Several exchanges with origins in mainland China, including notable names like OKX and Binance, have withdrawn their applications, primarily due to stringent new rules preventing mainland Chinese residents from accessing their platforms. This aligns with Beijing’s broader crackdown on cryptocurrencies.
The recent regulatory moves by Hong Kong’s SFC are part of a broader strategy to recalibrate the city’s attractiveness as a crypto market leader, parallel to other major hubs like Singapore and Dubai. This initiative, however, has faced challenges due to the stringent regulatory environment, which some industry insiders believe has dampened the initial enthusiasm for setting up crypto businesses in the city.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
