Twenty-4 firms have utilized for licenses to function
digital asset exchanges in Hong Kong, marking a transfer within the metropolis’s bid to
set up a regulated hub for the business. Notable candidates embrace Bybit,
OKX, and Crypto.com.
Among the many record of candidates had been Gate.io, HTX, and Bullish,
every boasting notable buying and selling volumes within the digital asset sphere. The
software course of got here with a deadline of February twenty ninth, after which
platforms failing to submit should stop operations by the tip of Might.
Angela Ang, Senior Coverage Adviser at Blockchain Intelligence Agency TRM Labs, Supply: LinkedIn
Notably absent from the applicant roster had been business
giants like Binance,
Coinbase, and Kraken.
Trade observers view the appliance pool as a litmus take a look at for Hong Kong’s
enchantment as a digital-asset heart, notably amidst intensifying competitors
from different jurisdictions. Town’s nine-month-old virtual-asset regulatory
framework prioritizes investor safety, doubtlessly introducing compliance
prices that would deter some companies.
“The applying record is the litmus take a look at for business
sentiment,” mentioned Angela Ang, the Senior Coverage Adviser at Blockchain Intelligence
Agency TRM Labs. “It’s an excellent signal to see quite a lot of well-known gamers within the
combine. What Hong Kong actually wants is quite a lot of dedicated, sizable gamers to
anchor its ecosystem.”
Hold Studying
Ding Chen, the Head of Regulatory Affairs at Bullish,
acknowledged the associated fee implications of working a regulated enterprise, drawing
parallels with conventional monetary providers. Such issues are factored
into firms’ total methods as they navigate Hong Kong’s regulatory panorama.
Over-the-Counter Dominance: Crypto Flows Past Digital
Exchanges
Hong Kong’s pivot in the direction of changing into a crypto hub in late 2022
displays an effort to venture a cutting-edge picture amid uncertainties concerning the
metropolis’s future. Presently, HashKey Alternate and OSL Group are the one
licensed digital-asset exchanges working in Hong Kong.
UPDATE: #HongKong declares it is going to now not settle for license functions from #crypto exchanges as of Feb. 29. Noncompliant platforms will face imminent closure, marking a big shift within the area’s cryptocurrency regulatory panorama. #CryptoRegulation #HongKong pic.twitter.com/bVMmL17B1q
— Paweł Łaskarzewski (@PawelSynapse) February 29, 2024
Gary Tiu, the Head of Regulatory Affairs at OSL, highlighted the
evolving regulatory surroundings’s affect on enterprise development and
emphasised the necessity to assess related prices.
Regardless of Hong Kong’s attract as a crypto vacation spot, knowledge
from Chainalysis
signifies that a good portion of crypto flows into the town happens
by over-the-counter (OTC) trades reasonably than digital-asset exchanges.
Regulators have initiated crackdowns on small outlets facilitating
cash-to-digital asset exchanges, signaling efforts to streamline oversight.
Hong
Kong is actively exploring rules for stablecoins and contemplating
the opportunity of permitting exchange-traded funds investing immediately in choose
cryptocurrencies. In a latest growth, the federal government bought $750 million of
digital inexperienced bonds utilizing HSBC Holdings’ tokenization platform, additional
underscoring the town’s foray into digital finance.
Twenty-4 firms have utilized for licenses to function
digital asset exchanges in Hong Kong, marking a transfer within the metropolis’s bid to
set up a regulated hub for the business. Notable candidates embrace Bybit,
OKX, and Crypto.com.
Among the many record of candidates had been Gate.io, HTX, and Bullish,
every boasting notable buying and selling volumes within the digital asset sphere. The
software course of got here with a deadline of February twenty ninth, after which
platforms failing to submit should stop operations by the tip of Might.
Angela Ang, Senior Coverage Adviser at Blockchain Intelligence Agency TRM Labs, Supply: LinkedIn
Notably absent from the applicant roster had been business
giants like Binance,
Coinbase, and Kraken.
Trade observers view the appliance pool as a litmus take a look at for Hong Kong’s
enchantment as a digital-asset heart, notably amidst intensifying competitors
from different jurisdictions. Town’s nine-month-old virtual-asset regulatory
framework prioritizes investor safety, doubtlessly introducing compliance
prices that would deter some companies.
“The applying record is the litmus take a look at for business
sentiment,” mentioned Angela Ang, the Senior Coverage Adviser at Blockchain Intelligence
Agency TRM Labs. “It’s an excellent signal to see quite a lot of well-known gamers within the
combine. What Hong Kong actually wants is quite a lot of dedicated, sizable gamers to
anchor its ecosystem.”
Hold Studying
Ding Chen, the Head of Regulatory Affairs at Bullish,
acknowledged the associated fee implications of working a regulated enterprise, drawing
parallels with conventional monetary providers. Such issues are factored
into firms’ total methods as they navigate Hong Kong’s regulatory panorama.
Over-the-Counter Dominance: Crypto Flows Past Digital
Exchanges
Hong Kong’s pivot in the direction of changing into a crypto hub in late 2022
displays an effort to venture a cutting-edge picture amid uncertainties concerning the
metropolis’s future. Presently, HashKey Alternate and OSL Group are the one
licensed digital-asset exchanges working in Hong Kong.
UPDATE: #HongKong declares it is going to now not settle for license functions from #crypto exchanges as of Feb. 29. Noncompliant platforms will face imminent closure, marking a big shift within the area’s cryptocurrency regulatory panorama. #CryptoRegulation #HongKong pic.twitter.com/bVMmL17B1q
— Paweł Łaskarzewski (@PawelSynapse) February 29, 2024
Gary Tiu, the Head of Regulatory Affairs at OSL, highlighted the
evolving regulatory surroundings’s affect on enterprise development and
emphasised the necessity to assess related prices.
Regardless of Hong Kong’s attract as a crypto vacation spot, knowledge
from Chainalysis
signifies that a good portion of crypto flows into the town happens
by over-the-counter (OTC) trades reasonably than digital-asset exchanges.
Regulators have initiated crackdowns on small outlets facilitating
cash-to-digital asset exchanges, signaling efforts to streamline oversight.
Hong
Kong is actively exploring rules for stablecoins and contemplating
the opportunity of permitting exchange-traded funds investing immediately in choose
cryptocurrencies. In a latest growth, the federal government bought $750 million of
digital inexperienced bonds utilizing HSBC Holdings’ tokenization platform, additional
underscoring the town’s foray into digital finance.
