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April 22, 2024
Regulatory News

Why 24 Crypto Firms Race for Approval in This City

24 crypto corporations have sought licenses from Hong Kong’s Securities and Futures Fee (SFC). This listing contains outstanding names comparable to OKX, Bybit, and Crypto.com. They purpose to supply retail buying and selling providers, aligning with Hong Kong’s imaginative and prescient as a crypto hub.

The SFC’s deadline on February 29 spurred these functions, signaling a pivotal second for the sector.

Hong Kong Goals for Crypto Regulation Amidst Rising Income

Hong Kong’s licensing initiative is a daring step towards regulating the unstable crypto market. It showcases town’s dedication to safeguarding digital asset buyers. Thus far, solely HashKey and OSL have secured their licenses. Thus, the stress mounts for the others, as non-applicants should halt operations by March’s finish.

The SFC’s stringent licensing standards purpose to bolster investor safety. Platforms awaiting license approval are differentiated from these absolutely licensed, making certain transparency and safety.

This method is important, particularly with town’s crypto market income hitting $142.6 million in August 2023. Moreover, projections recommend a progress in direction of the $254.6 million mark by 2028, highlighting the sector’s financial significance.

Learn extra: Crypto Regulation: What Are the Advantages and Drawbacks?

Crypto Market Income in Hong Kong. Supply: Statista

Matrixport HK, beneath Flying Hippo Applied sciences Restricted, additionally joined the fray, submitting its software simply in time. But, the journey to licensing has its setbacks.

For instance, Huobi HK retracted its software shortly after submission, illustrating the challenges of assembly the SFC’s excessive requirements. This and different withdrawals emphasize the rigorous vetting course of to make sure platform reliability and compliance.

Learn extra: A Information to the Finest Stablecoins in 2024

Past crypto buying and selling, Hong Kong is increasing its regulatory scope to incorporate stablecoin issuance. Bulletins a few regulatory sandbox for stablecoin issuers and the e-CNY pilot challenge enlargement sign a complete method to digital asset oversight.

We are going to increase the scope of e-CNY pilot testing in Hong Kong. Members of the general public might arrange e-CNY wallets simply to be used and for topping up funds by the Quicker Cost System, thereby additional enhancing the effectivity and consumer expertise of cross-boundary cost providers,” Hong Kong Financail Secretary Paul Chan stated.

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