Hong Kong is experiencing a notable increase in the number of cryptocurrency businesses obtaining operational licenses. A total of 22 entities, including well-known companies like OKX, Bybit, Crypto.com, and Huobi HK, have filed applications to function as licensed trading platforms. This influx is in response to the region’s welcoming regulatory stance toward the crypto market, encouraging companies to establish a compliant presence.
Trading Platforms Eager for Regulatory Approval
The city’s Securities and Futures Commission (SFC) has reported a diverse list of applicants, including Bullish, Matrixport HK, Gate.HK, and HKVAEX, which is linked to Binance. These companies are vying for the coveted licenses that will enable them to offer their services to individual investors in a regulated manner. To date, Hong Kong has approved two crypto trading platforms, HashKey and OSL, with others waiting in queue. Firms have until the end of March to apply or they must discontinue services.
Future Framework for Stablecoin Issuers
In a move to bolster the crypto trading infrastructure, Hong Kong is also setting sights on stablecoin regulation. The government, through financial secretary Paul Chan, signalled that the Hong Kong Monetary Authority will soon establish a regulatory sandbox for stablecoin projects. All stablecoin issuers will be expected to secure a license to operate within legal boundaries.
Moreover, Hong Kong aims to enhance cross-border payment systems by incorporating the e-CNY, China’s national digital currency. This initiative seeks to improve international payment processes and underscores Hong Kong’s commitment to fintech innovation and the adoption of digital currencies.
