Home
News
- 1 Authorities of Hong Kong have instructed crypto firms to apply for licenses till the 1st of June, 2023.
- 2 The license will encourage crypto firms to enter the crypto market of Hong Kong.
Crypto firms are licensing their work until June 1st in Hong Kong. Many cryptocurrency firms are announcing plans to apply for licenses. The authorities have also released the crypto guidelines for crypto exchanges. This will allow the business to operate lawfully.
The Hong Kong-based crypto exchange, CoinEx, signals its entry into the city by launching BitHK. It is a professional crypto trading platform serving Hong Kong users. This announcement was made on May 29th.
Huboi also tweeted the same day to offer crypto trading to retail traders. It has submitted its Virtual Asset Service Provider License (VASPL) application to the Securities and Futures Commission (SFC).
VASPL Will Enhance Firms to Establish Crypto Business
Crypto exchanges are presently allowed to function in Hong Kong (HK). The authorities are approaching a more relaxed approach towards cryptocurrencies. According to Christopher Hui, the secretary for financial services and treasury, prior reports suggest that around 80 companies are seeking to establish their crypto business here.
But recently, SFC concluded that a total of 152 submissions were received in February. This increases the chances for HK to become a crypto hub in Asia, and beyond.
Other companies like crypto exchange OKX, virtual ZA bank, and conglomerate Greenland Holding have also shown their interest in gaining the VASP license. The announcement for license application was made on May 29, by SFC. As per the announcement, those seeking crypto asset security, segregation, and custody are welcome to apply for the license.
Hong Kong Becoming Hub For Crypto Market
Crypto Exchanges, Hong Kong Virtual Assets Association (HKLVAA), and Web3 Harbour also announced their separate launches in the combined statement. Though both companies are made to serve different aspects of the industry, they declare their launches together. HKLVAA aims to serve VASPL firms, while Web3 Harbour will help serve the development in Web3 to the locals.
Some of the guidelines for crypto firms include the exposure limit for retail investors. Also, retail trading is allowed in highly liquid tokens that are issued for at least one year. It also includes the marketing rights for the crypto companies. Companies not having licenses can not promote their services through advertisement.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
