The Hong Kong crypto market is rapidly becoming a hot cake in the crypto industry as many crypto platforms are reportedly flushing into the city for business. Analysts revealed that the friendly crypto regulation, especially for retail trades, is the mastermind behind the massive influx.
According to the report, the Hong Kong financial regulators are ready to open the national retail trade in the city on June 1. Also, the Securities and Futures Commission (SFC) of the city has announced that licensed crypto-related service providers can start offering retail trades once the market launches.
In addition, the agency also added that Virtual Assets Service Providers who are ready to comply with the regulations in the state are welcome to apply for a permit. The rules included asset separation, secure asset custody, security standards, and the like.
Crypto Firms Seek Hong Kong Licenses
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After the regulator announced the new development on May 23, crypto platforms have been trooping in large numbers into the Hong Kong regulators’ office to register their businesses. Many giant crypto firms, like CoinEx, Huobi, etc, are not left behind.
Many Giant Crypto Firms Troops Into Hong Kong
According to the report, CoinEx is the latest crypto firm to show interest in the trendy movement as it officially announced that it would soon launch a local branch named BitHK in the region. Also, the exchange plans to apply for its VASP permit on June 1 and focus on serving only Hong Kong investors.
In addition, the firm’s CEO, Haipo Yang, emphasized that they are ready to comply with the Code of Conduct the Hong Kong SFC and other financial agents mapped out to guild crypto exchanges in the city.
Yang added that they aim to launch their brand in the city to provide safe and reliable crypto trading services to investors in Hong Kong.
Furthermore, Huobi Exchange has also joined the moving train as it recently announced that it has applied for an operation license for its new branch, Huobi HK, in the city. It tweeted that Huobi HK now provides manager and spot trading services to institutional and retail customers.
Additionally, the firm tweeted that it is glad to be one of the pioneers of digital asset trading in Hong Kong. It added that all that is left to begin full operation is for the regulators to approve its license.
Additionally, Huobi HK will, according to the report, work with private auditors for about six months to ensure that they comply with Hong Kong financial regulators’ guidelines. Also, the firm would remain focused on anti-money laundering and security regulations to operate in the region seamlessly.
Regulatory Pledge To Safeguard Investors
Before the city announced the opening of a nationwide crypto market for retailers, Gate.io and BitMEX exchanges launched their trading platforms in the city. Gate.HK reportedly started offering crypto services on the 23rd of this month.
In addition, it also opened access for customers to deposit or withdraw their funds. Apart from the crypto companies mentioned above, many other firms have shown interest in getting a VASP license to operate in the region, and many more would follow suit.
Meanwhile, besides giving licenses to crypto service providers willing to abide by its rules, the Securities and Futures Commission of Hong Kong had other functions. It swore to protect retail traders in the market.
To do that, the financial regulators revealed that they would set efficient rules to guide the crypto exchanges to protect their citizens. Some regulations would ensure stability inspections at the beginning stage and effective governance.
Meanwhile, the Web3 Habour and the HKLVAA (Hong Kong Licensed Virtual Assets Association) began operation in the city on May 29. In their joint announcement, Gary Liu, the CEO of Web3 Habour, pointed out that Hong Kong has progressive and friendly crypto regulations.
In addition, the duo stated that the shared principles would aid in placing Hong Kong as one of the leading firms in the Web3 space. It would also help to project the city as a significant global crypto hub center