Bittime - Hong Kong has introduced strict regulations demanding all crypto exchanges to apply for licenses and ensuring that they do not accept users from China. This new policy has caused a large number of large crypto platforms, such asBinance, OKEx, HTX, Bybit, and Gate to withdraw their licensing applications.
Crypto Licensing Requirements in Hong Kong Are Increasingly Stricter
Based on information from TechFlow, the main requirement from the Hong Kong Securities and Futures Commission (SFC) is the signing of a commitment letter by all crypto exchanges . This letter emphasized that their entities should not have users from mainland China in any region.
OKEx attempted to form an industry alliance to oppose this requirement, but the effort was unsuccessful. Despite this, industry observers say that entities that withdrew their applications may still apply again in the future.
Hong Kong Optimistic to Become a Global Digital Asset Center
Nevertheless, Hong Kong continues to stand firm with its plans to become a global center for digital assets. Hong Kong's securities regulator is close to granting official licenses to 11 crypto exchanges, a year after the Securities and Futures Commission (SFC) issued proposed regulatory requirements.
The expected licensing approval is in line with Hong Kong's broad plans to become a global hub for digital assets.
Crypto.com and Bullish are examples among 11 exchanges that are close to being officially licensed and integrated into the Hong Kong crypto market. The SFC indicated that the exchange is now “deemed to be licensed” pending compliance with all regulatory requirements.
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In an effort to protect the crypto market in its jurisdiction, Hong Kong pledged to carefully examine application licenses, ensuring that only companies that comply with regulations receive approval.
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SFC: Commitment to Crypto Investor Security in Hong Kong
In a release last Friday (28/05), the SFC stated that licensed exchanges (and their main owners) must fully comply with all regulatory requirements and licensing conditions from the SFC.
The SFC does not expect exchanges submitting proposals to actively market their services or accept new retail clients until they have demonstrated the implementation and effectiveness of policies, procedures, systems and controls that are satisfactory to the SFC and are officially licensed.
Among the other exchanges included in the 11 applicants are PantherTrade, DFX Labs, xWhale, Accumulus, and YAX. According to a Bloomberg report, Bybit and OKEx withdrew their licensing applications, while the world's largest crypto exchange, Binance, did not submit an application.
Coinbase Global and US-based Kraken also did not apply for permits despite the SFC giving a grace period until June 1 for crypto exchanges to obtain full licenses.
Crypto Licensing Focus in Hong Kong on Bitcoin and Ethereum ETFs
Hong Kong is committed to becoming a global digital asset hub during the fourth quarter of 2022. Part of this initiative includes efforts to develop the fast-growing crypto market.
Increasing the number of licensed exchanges is a top priority of the proposed measures, as well as introducing Bitcoin and Ethereum exchange-traded funds (ETFs). Another important step that Hong Kong is implementing is developing a regulatory framework for stablecoins and digital bonds on tokenization platforms.
This ambitious plan comes amid stiff competition from other leading financial centers such as Singapore and Dubai. Regarding the SFC directive, around two dozen crypto exchanges have applied for permission by the application deadline which ends at the end of February.
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However, some of these exchanges are pulling back as the deadline approaches. Hong Kong-based Gate.HK stated that the company needed a “major overhaul” of its trading platform to meet the stringent requirements.
To date, only two companies, namely Hashkey Exchange and OSL Group, have received complete permits to operate as digital asset trading platforms in Hong Kong.
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Conclusion
Although the challenges faced by crypto exchanges in obtaining a license in Hong Kong are enormous, this effort shows Hong Kong's commitment to creating a safe and trustworthy crypto market for investors.
Hong Kong's strict crypto licensing policy is expected to provide clarity and stability in the long term, although in the short term it creates obstacles for many industry players.
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How to Buy Bitcoin (BTC) on Bittime
You can buy and sell Bitcoin (BTC) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair BTC/IDR . To be able to buy BTC/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Bitcoin (BTC) on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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