- Hong Kong has initiated the license application process for operating trading platforms and exchanges.
- According to Hong Kong SEC CEO Julia Leung, this step is supported by a comprehensive regulatory framework aimed at investor protection and risk management.
- Officials reported that more than 80 companies have expressed interest in obtaining licenses.
According to sources from Asian news outlets, Hong Kong has initiated license processes for exchanges that will offer cryptocurrency trading.
Hong Kong Takes Action for License Processes
According to sources from Asian news outlets, Hong Kong has taken a significant step towards becoming a cryptocurrency hub by initiating the license application process for operating trading platforms and exchanges, allowing individual trading in the second half of 2023.
According to Hong Kong Securities and Futures Commission CEO Julia Leung, this step is supported by a comprehensive regulatory framework aimed at investor protection and risk management. This development enables sustainable growth and innovation in Hong Kong’s cryptocurrency industry among global regulatory challenges.
Applicants for licenses must meet various requirements, such as a minimum capital of 5 million Hong Kong dollars (638,000 US dollars), implementation of anti-money laundering measures, and appointment of experienced managers.
In a statement dated May 23, the Securities and Futures Commission encouraged virtual asset exchange platform operators who wish to comply with their standards to apply for a license, while those who do not wish to do so must properly close their businesses in Hong Kong.
Officials reported that more than 80 companies have expressed interest in obtaining licenses, with companies in mainland China particularly eager due to the ban on cryptocurrency-related services in mainland China.
A State-Owned Chinese Organization Also Wants to Obtain a License
According to local media, a subsidiary of the state-owned real estate developer Greenland Group plans to apply for a license. In addition, online credit provider ZA Bank announced on May 24 that it will provide trading services to individuals in collaboration with licensed companies.
ZA Bank CEO Ronald Iu said, “We welcome Hong Kong’s new licensing guidelines and are excited to offer our users investment opportunities provided by virtual assets.”
The reputation of the cryptocurrency market has been affected by the collapse of FTX and regulatory challenges in the United States. South Korea and Singapore are leading the way in cryptocurrency market regulation and are attracting businesses seeking refuge from other countries. Hong Kong has changed its attitude towards crypto and is actively promoting virtual currencies, including the listing of an ETF that tracks Bitcoin.
Despite concerns about Hong Kong’s autonomy, regulators emphasize a strong commitment to oversight. Hong Kong Monetary Authority CEO Eddie Yue said, “Our regulations will be strict.”
