Regulation
Hong Kong SFC Pushes for Crypto Regulation: 11 Exchanges Close to Licensing – Details
Updated June 2, 2024, 4.41pm IST
Prominent operators such as OKX and Bybit have withdrawn their bids for the permits, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, along with major platforms such as Coinbase Global and Kraken, have decided not to apply for licenses.
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 on track to obtain licenses, marking a significant milestone in the city’s efforts to establish itself as a leading hub for the digital asset industry. Notable applicants include Crypto.com and Bullish, both of which are considered authorized, according to the SFC website.
However, major players such as OKX and Bybit have withdrawn their bids for the permits, signaling a mixed response from the industry. Surprisingly, Binance Holdings, the world’s largest exchange, along with major platforms such as Coinbase Global and Kraken, have decided not to apply for licenses.
According to the Bloomberg report, the SFC has set June 1 as the deadline for cryptocurrency exchanges to obtain licenses or be considered authorized to operate in the city and cater to local investors. While this move represents progress, companies must still meet the SFC’s compliance requirements to receive effective permits.
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This development underlines Hong Kong’s strategic pivot towards creating a virtual asset hub, launching 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 reverberated globally.
The report adds that despite these advances, competition remains fierce, with cities such as Dubai and Singapore vying for prominence in the digital asset space. It remains uncertain whether Hong Kong will emerge as the definitive leader in this space.