Regulation
Hong Kong SFC Advances Crypto Regulation: 11 Exchanges Close to Getting Licenses – Details
Updated June 2, 2024 at 4:41 p.m. IST
Prominent players such as OKX and Bybit have withdrawn their permit bids, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, as well as major platforms like Coinbase Global and Kraken, have chosen not to apply for a license.
Hong Kong’s shift to digital assets (Image source: iStockphoto)
Hong Kong’s Securities and Futures Commission (SFC) has announced that 11 cryptocurrency exchanges are in the process of obtaining licenses, marking a significant milestone in the city’s efforts to establish itself as a leading hub for digital assets sector. Notable applicants include Crypto.com and Bullish, both of which are considered licensed, according to the SFC website.
However, high-profile players such as OKX and Bybit have withdrawn their permit bids, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, as well as major platforms like Coinbase Global and Kraken, have chosen not to apply for a license.
According to the Bloomberg report, the SFC has set June 1 as the deadline for crypto exchanges to obtain licenses or be considered authorized to operate in the city and cater to local investors. While this decision represents progress, businesses must still meet SFC compliance requirements to receive real permits.
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This development highlights Hong Kong’s strategic pivot towards creating a virtual assets hub, initiated in late 2022. It is part of broader efforts to restore the city’s reputation as a financial hub following a crackdown on dissent that has had global repercussions.
The report adds that despite this progress, competition remains fierce, with cities like Dubai and Singapore also vying for leadership in the digital assets space. It remains unclear whether Hong Kong will become a definitive leader in this area.