Hong Kong had recently announced its new regime which requires all crypto trading platforms and exchanges to compulsorily apply for a licence. These rules will come into effect from June 1 in order to protect the retail investors. The announcement has kicked off a race among exchanges to appeal to the brand new pool of retail investors, with several globally renowned cryptocurrency companies planning to apply for a licence.
CoinEx, a Hong Kong-based crypto exchange, joined many others in the excitement leading to the integration of the Hong Kong retail crypto trading regime. The platform has announced the launch of BitHK, a local platform which plans to submit its Virtual Asset Service Provider (VASP) licence application to the SFC on June 1 itself.
On May 29, Huobi Global also announced that its crypto trading services were being opened for local retail traders in association with its Hong Kong entity, after submitting its VASP application to the Securities and Futures Commission (SFC).
Crypto exchanges Gate.io and BitMEX also talked about expanding their crypto trading services in Hong Kong and the applications associated with the same.
Other entities to join the list of firms who are soon going to apply for the VASP licence include OKX, ZA Bank- the largest digital bank in Hong Kong, and a subsidiary of the Chinese multi-industry conglomerate called Greenland Holdings.
The same day further witnessed two new crypto groups, Hong Kong Licensed Virtual Assets Association (HKLVAA) and Web3 Harbour to also jointly announce the launch of their operations. While HKLVAA aims to serve VASP-licensed firms and parties who wish to get licenced in the city, Web3 Harbour aims to help local development of Web3.
As stated prior, the SFC will commence the acceptance of applications from June 1 onwards for the Hong Kong crypto retail trading regime. With this new set of regulatory measures, yet another country takes one step closer to regulating crypto markets with transparency, and offering maximised protection to their investors.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash