- Hong Kong will license 11 crypto exchanges, together with Crypto.com and Bullish.
- The deadline for exchanges to be licensed or “deemed to be licensed” is June 1st.
- Main gamers like Binance, OKX, and Coinbase didn’t apply for licenses.
Hong Kong’s Securities and Futures Fee (SFC) has introduced that 11 digital asset buying and selling platforms (VATPs) are poised to obtain official licenses, a 12 months after the town launched new rules to foster a thriving crypto trade.
Outstanding platforms comparable to Crypto.com and Bullish, recognized as “deemed to be licensed” within the SFC’s latest replace, are among the many candidates near receiving the licenses. These exchanges, identified for his or her important international buying and selling volumes, at the moment are a step nearer to working absolutely below Hong Kong’s regulatory framework.
Nonetheless, not all main gamers have sought licensing in Hong Kong. Exchanges like OKX and Bybit have withdrawn their purposes, whereas Binance, the world’s largest trade, didn’t apply. Main U.S.-based platforms Coinbase International and Kraken have additionally opted out of searching for permits.
The SFC set June 1 because the deadline for exchanges to both safe a license or be deemed eligible. To proceed working and serving native buyers, companies should at a minimal be categorized as “deemed to be licensed.” Full licenses can be issued as soon as the SFC confirms ongoing compliance with its rules.
Hong Kong’s push to turn into a digital asset hub started in late 2022 as a part of a broader effort to re-establish its standing as a worldwide monetary heart. Town’s initiatives to draw the crypto trade embrace increasing the checklist of licensed exchanges, introducing Bitcoin spot and Ethereum exchange-traded funds (ETFs), and creating frameworks for stablecoin regulation and digital bond issuance on tokenization platforms.
Notably, Hong Kong faces competitors from different jurisdictions like Dubai and Singapore for the title of high digital asset heart. Roughly two dozen entities utilized for crypto trade licenses by the February 29 deadline. At present, HashKey Trade and OSL Group are the one two absolutely licensed VATPs in Hong Kong.
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