Hong Kong's Crypto License Scheme Sees 24 Applicants, Far Fewer Than Singapore's 70

by Brock Lang

Hong Kong's Crypto License Scheme Sees 24 Applicants, Far Fewer Than Singapore's 70

Hong Kong’s Crypto License Design Sees 24 Applicants, Some distance Fewer Than Singapore’s 70

Hong Kong's VATP license

The time limit for virtual asset procuring and selling platform (VATP) crypto license functions in Hong Kong has handed, with the collection of candidates reaching 24, a enormously lower decide than the 70 candidates considered in a same arrangement in Singapore.

As a minimal five cryptocurrency corporations submitted their functions within the final days leading as a lot as the February 29 time limit, per a myth from the South China Morning Publish.

Cryptocurrency exchanges that have not yet utilized must exit the Hong Kong market by Might maybe simply 31.

The Securities and Futures Commission (SFC) will grunt permitted and declined functions on a public register by June 1, 2024.

After securing approval, virtual asset procuring and selling platforms can onboard fresh retail and institutional crypto merchants and starting up marketing in Hong Kong.

Foremost Exchanges Tied to China Publish Functions


Foremost crypto exchanges with ties to mainland China or Hong Kong, including industry giants, bear both utilized for licenses straight or via their mates.

HBGL Hong Kong, an affiliate of HTX (formerly Huobi Global), submitted an application twice for its Huobi HK platform, whereas HKVAEX, an affiliate of Binance, utilized in April.

OKX, one more prominent commerce founded in China, submitted its application merit in November.

At the moment, OSL and HashKey are essentially the most bright licensed exchanges serving retail merchants.

Apart from the list of crypto exchanges being notion about for approval, the SFC furthermore launched a list of these whose functions bear both been withdrawn or outrightly rejected by the agency.

The list involves Ammbr HK Cramped, BitHarbour HK Cramped, Meex Digital Securities Cramped, and HBGL HK Cramped. Out of the four exchanges, most bright the Meex Digital Securities Cramped application used to be rejected by the SFC.

The opposite three withdrew their functions.

Hong Kong’s Crypto License and Laws Might maybe simply Restrict Competitiveness


It’s worth noting that there were concerns in regards to the strict requirements for the registration assignment, which might maybe maybe also presumably hamper the market’s competitiveness.

While Hong Kong permits crypto corporations to tap into developer skill in mainland China, the high costs linked to the licensing assignment differentiate it from Singapore.

Estimates counsel that the total assignment, including exterior assessors and hiring a neighborhood to blame officer (RO), can also worth over HK$60 million (US$7.7 million).

Angela Ang, a primitive regulator with the Financial Authority of Singapore, counseled SCMP that the lower collection of candidates in Hong Kong can also simply furthermore be attributed to the stringent requirements.

Moreover, there is advise that Hong Kong’s regulations can also simply limit the global competitiveness of crypto corporations the usage of the town as a disagreeable of operations.

The most recent framework restricts the scope of actions and services that will furthermore be provided to prospects, presumably hindering their skill to feature globally.

Hong Kong furthermore objectives to adjust tokenized securities and stablecoins as portion of its broader Web3 push, whereas the monetary authority explores the notion that of a digital Hong Kong greenback.

In comparability, when Singapore’s Financial Authority gave crypto corporations one month to inform their pre-present verbalize and arrangement to be licensed in 2021, it resulted in about 70 legit license functions by the kill of 2021, three instances the quantity in Hong Kong.

Source : cryptonews.com

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