Hong Kong crypto exchange licensing – Hong Kong’s licensing body, the Security and Futures Commission (SFC) targets May for rolling out regulations regarding crypto exchange licensing.
According to Bloomberg, Julia Leung, the CEO of the commission made this known on April 27 at an event. Ms. Julia pointed out that a consultation process for the licensing of crypto exchanges in the city is currently going on. According to her, so far, there have been over 150 responses.
She Commission informed that the new regulatory structure will take effect from June 1. The new regulation instructs all crypto platforms to register with the SFC.
The law offers licensed exchanges the right to provide crypto trading services to individual traders on their platforms. This new development is in a bid to make Hong Kong the crypto financial center in Asia.
Hashkey, an end-to-end digital asset financial services group, and OSL, a digital asset platform are already operating under the watch of the SFC. Hong Kong’s banking sector supports crypto firms, this might make more crypto exchanges obtain licenses in the city since crypto firms in the U.S. are searching for new partners following its banking crisis.
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Changpeng ‘CZ’ Zha, Binance CEO previously predicted that more funds will move to Hong Kong since the banks in the city support cryptocurrency.
BitGet Launches Hong Kong Arm “BitGet HK”
In other news, Seychelles-based crypto exchange BitGet announces its launch of BitGet HK to service its Hong Kong users. This was done in the wake of the new regulation demands.
The exchange made it clear that its Hong Kong-based users must move to its subsidiary, BitGetX HK. In a statement, it said,
“BitgetX Hong Kong intends to apply for the license under the Hong Kong Virtual Asset Service Provider (VASP) regime and will operate under the transitional arrangement that will be created under the Hong Kong VASP regime until its license application is approved.”
Meanwhile, Chinese blockchain news reporter, Colin Wu also reported on his Twitter page that offshore exchanges have begun to restrict Hong Kong users. See the tweet below:
Bitget Exchange announced that due to Hong Kong’s regulatory policy that will be launched on June 1, it will no longer provide services for Hong Kong users starting this month. Offshore exchanges have begun to restrict Hong Kong users one after another.https://t.co/yI9dckBDjV
— Wu Blockchain (@WuBlockchain) April 27, 2023