Crypto.com Nears Licensing Approval in Hong Kong with 10 Other Exchanges

Almost a dozen cryptocurrency exchanges are about to get their trading licenses approved by Hong Kong’s Securities and Futures Commission (SFC). Eleven applications, including Hong Kong-based Bullish and Singapore-based Crypto.com, were listed on the SFC’s website as “deemed to be licensed” as of June 1st, Bloomberg claims.

Hong Kong unveiled a new legal framework for exchanges of digital assets last year. The deadline for cryptocurrency exchanges to secure a license for their virtual asset trading platforms or to be “deemed to be licensed” was set for June 1. As of right now, the area is home to just two cryptocurrency exchanges with complete licenses: HashKey Exchange and OSL Group.

Compliance and Licensing

The SFC mandates that only licensed or deemed-to-be-licensed platforms can operate within Hong Kong. These platforms must demonstrate consistent compliance to receive their actual permits. This new regulatory approach aims to ensure a safer and more transparent digital asset trading environment in the special administrative region (SAR).

Despite the new regulations, not all crypto exchanges are seeking licenses. Last month, OKX announced it had withdrawn its application for a virtual asset trading platform license and ceased operations in Hong Kong. Similarly, HTX, formerly known as Huobi and associated with Tron (TRX) founder Justin Sun, withdrew and reapplied for a license multiple times before ultimately deciding against it. Another notable withdrawal came from Bybit, which also pulled its application.

Conversely, major crypto exchanges like Binance, Coinbase Global, and Kraken chose not to submit applications for the Hong Kong license, signaling a cautious approach to the region’s regulatory landscape.

As Hong Kong moves forward with its licensing process, the crypto market in the region is poised for significant changes. The SFC’s commitment to stringent compliance and regulatory oversight is expected to shape the future of digital asset trading in Hong Kong. The forthcoming approvals will mark a pivotal moment, potentially setting a precedent for other regions to follow in regulating the rapidly evolving crypto industry.