Aiming to become the World's Crypto Center, Hong Kong Approves 11 Crypto Currency Exchanges

Liputan6.com, Jakarta The Hong Kong Securities and Futures Commission (SFC) recently gave preliminary approval to 11 cryptocurrency exchanges to continue operating in the city.

Reporting from Coinmarketcap, Wednesday (5/6/2024), this marks the first step towards issuing virtual asset trading platform (VATP) licenses since 2022. This step comes as Hong Kong aims to establish itself as a leading crypto center alongside global partners such as Singapore and Dubai.

According to a South China Morning Post report, among the approved exchanges, Crypto.com, which was originally founded in Hong Kong and now operates from Singapore, stands out as the largest exchange considered licensed.

Notably, it is the only exchange in the top 20 based on 24-hour trading volume measured by CoinGecko, which is still seeking a license in Hong Kong. Bullish, which was founded in Gibraltar but also operates from Singapore and New York, is the next significant exchange to be considered licensed.

Under new regulations introduced last year, cryptocurrency exchanges must obtain approval for such arrangements to continue operating pending full licensing approval.

The deadline for exchanges that do not request permission to cease operations is June 1. However, some exchanges have withdrawn their license applications due to complications arising from regulatory changes.

Some of the exchanges that withdrew their applications had ties to mainland China, where they were originally founded but abandoned after Beijing's crackdown on digital tokens. Leading exchanges include local affiliates of major platforms such as OKEx, Binance, HTX, KuCoin, Gate.io, and, most recently, Bybit.

The Hong Kong government has emphasized regulatory compliance, including measures to prevent mainland Chinese residents from accessing crypto platforms and the recently approved Bitcoin (BTC) and Ethereum (ETH) exchange-traded spot (ETF) markets.

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