Hong Kong’s Crypto Crackdown? 11 Exchanges Get Nod, However Large Names Skip Out

• 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 town launched new rules to foster a thriving crypto business.

Outstanding platforms corresponding 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 world buying and selling volumes, at the moment are a step nearer to working totally beneath Hong Kong’s regulatory framework.

Nevertheless, not all main gamers have sought licensing in Hong Kong. Exchanges like OKX and Bybit have withdrawn their functions, whereas Binance, the world’s largest alternate, didn’t apply. Main U.S.-based platforms Coinbase World and Kraken have additionally opted out of in search of 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 traders, companies should at a minimal be categorised as “deemed to be licensed.” Full licenses shall 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 middle. The town’s initiatives to draw the crypto business embody increasing the listing of approved 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 prime digital asset middle. Roughly two dozen entities utilized for crypto alternate licenses by the February 29 deadline. Presently, HashKey Trade and OSL Group are the one two totally licensed VATPs in Hong Kong.