Hong Kong announces nearly a dozen exchanges close to receiving permits –

Hong Kong’s ambitious plans for digital assets continue as eleven exchanges, including Crypto.com and Bullish, are now considered “licensed” by the Securities & Futures Commission (SFC).

This news comes a year after the SFC published a regulation on digital assets in a bid to establish Hong Kong as a global crypto hub.

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Currently, major exchanges such as Binance, Kraken, and Coinbase have yet to apply for a license from the SFC. But this move to license several “B-level” exchanges marks a significant step for Hong Kong’s crypto plans.

It set a June 1 deadline for cryptocurrency exchanges to obtain a license or be deemed authorized by the SFC.

According to a Bloomberg report, exchanges that are now “considered licensed” can operate in the city but will not receive full licenses until they meet the SFC’s rigorous list of compliance checks.

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A new rival for Dubai as home to major crypto operators?

Hong Kong began its pivot to cryptocurrencies in late 2022. The main goal was to shed a positive light on its financial sector following a crackdown on dissent. At present, Singapore and Dubai are the main competitors vying with Hong Kong to become a major digital asset hub.

Around twelve companies applied for licenses to operate cryptocurrency exchanges by the previous February 29 deadline. There are currently only two fully licensed digital asset exchanges in Hong Kong: HashKey Exchange and OSL Group.

Hong Kong is prioritizing investor protection and anti-money laundering measures. This will result in heavy compliance costs and rigorous reporting for any companies hoping to obtain the license. With this move, Hong Kong offers potential access to mainland China’s wealth, despite there being a ban on cryptocurrency trading.

Hong Kong hopes to avoid an FTX-style incident

In recent years, the cryptocurrency industry has suffered many public setbacks, most notably the collapse of FTX and the fine of Binance for money laundering violations.

These only help highlight the challenges faced by Hong Kong in regulating this evolving space as it attempts to become a crypto hub.

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Disclaimer: Cryptocurrencies are a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.

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