Hong Kong’s retail trading market is on the brink of opening up, and cryptocurrency exchanges are eager to establish a presence in the region.
As the June 1 deadline approaches, multiple crypto companies have announced their intentions to apply for licenses to operate in Hong Kong.
On May 29, CoinEx, a Hong Kong-based crypto exchange, revealed its plan to launch a local platform called BitHK. CoinEx will submit its application for a Virtual Asset Service Provider (VASP) license to the securities regulator on June 1.
Huobi, another prominent exchange, also confirmed its entry into the Hong Kong market, offering crypto trading services to local retail traders. Huobi submitted its VASP application to the Securities and Futures Commission (SFC) on May 29.
Gate.io and BitMEX had previously announced their applications for licenses and dedicated crypto trading services in Hong Kong on May 24 and May 22, respectively.
Other players, including OKX, ZA Bank (Hong Kong’s largest digital bank), and a subsidiary of the Chinese conglomerate Greenland Holdings, have expressed their intentions to obtain VASP licenses as well.
The SFC, on May 23, announced that licensed VASPs would be allowed to serve retail investors starting from June 1. Crypto firms willing to adhere to the SFC’s guidelines regarding asset custody, security standards, asset segregation, and more are encouraged to apply for licenses.
In addition to the license applications, two new industry groups, the Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour, announced their establishment on May 29. The HKLVAA aims to support VASP-licensed firms and those seeking licenses in Hong Kong, while Web3 Harbour focuses on promoting local Web3 development.
