Hong Kong Announces That Close To A Dozen Exchanges Close To Receiving Permits
Hong Kong’s ambitious plans for digital assets continue as eleven exchanges, including Crypto.com and Bullish, are now deemed “licensed” by the Securities & Futures Commission (SFC).
This news comes one year after the SFC published a digital-asset rulebook in a move to establish Hong Kong as a global crypto hub.
Binance & Coinbase Next To Be Licensed After Crypto.com?
Currently, major exchanges such as Binance, Kraken, and Coinbase have yet to apply for a license from the SFC. But, this move to license several ‘B-tier’ exchanges marks a significant step for Hong Kong’s crypto plans.
It has established a deadline of June 1 for crypto exchanges to obtain a license or be considered licensed from the SFC.
According to a Bloomberg report, the exchanges that are now “deemed to be licensed” can operate in the city but will not receive full licenses until they satisfy the SFC’s stringent list of compliance checks.
Hong Kong's SFC has published a list of two licensed crypto trading platforms and 17 pending applicants under the new regulations that went into effect on June 1. #hongkong #crypto #cryptocurrency #cryptonews #finance #news #cryptotradinghttps://t.co/peAq1icI93
— Fazzaco (@fazzaco_fx) June 3, 2024
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A New Rival Dubai For As A Home For Major Crypto Players?
Hong Kong began its pro-crypto pivot in late 2022. The main aim was to shine a positive light on its financial sector after a crackdown on dissent. As it stands, Singapore and Dubai are the main competitors vying with Hong Kong to become a leading digital asset hub.
Around twelve companies applied for licenses to operate crypto exchanges by the previous February 29 deadline. There are currently only two fully licensed digital asset exchanges in Hong Kong: HashKey Exchange and OSL Group.
Hong Kong is prioritizing investor protection and anti-money laundering measures. This will result in heavy compliance costs and strict reporting for any companies hoping to become licensed. With this move, Hong Kong offers a potential gateway to mainland China’s wealth, despite a crypto trading ban there.
Hong Kong Hoping To Avoid An FTX Style Incident
Over the past few years, the crypto industry has suffered many public setbacks, most notably the collapse of FTX and Binance’s penalty for money laundering violations.
These only help to highlight the challenges faced by Hong Kong in regulating this evolving space as it attempts to become a crypto hub.
EXPLORE: Crypto Developments In Asia: UAE, Singapore and Bangkok In Focus
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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