Chinese Insurance Giant Partners with Swiss Crypto Bank

Previously, Hong Kong's Securities and Futures Commission (SFC) recently gave preliminary approval to 11 cryptocurrency exchanges to continue operating in the city.

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

According to a report by the South China Morning Post, 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 by 24-hour trading volume as measured by CoinGecko that is still seeking a license in Hong Kong. Bullish, which is based in Gibraltar but also operates out of Singapore and New York, is the next significant exchange considered for a license.

Under new regulations introduced last year, cryptocurrency exchanges must obtain approval for the arrangement to continue operating while awaiting full licensing approval.

The deadline for exchanges that did not apply for a license to cease operations was June 1. However, some exchanges have withdrawn their license applications due to complications arising from the regulatory changes.

Several of the exchanges that withdrew their applications had ties to mainland China, where they were originally founded but abandoned following Beijing’s crackdown on digital tokens. Prominent exchanges include local affiliates of major platforms like 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 funds (ETF) spot markets.