Hong Kong issues licenses to 4 new crypto exchanges during bitcoin price increase

Good news for the crypto industry in Hong Kong! The city’s securities regulator has recently approved four new cryptocurrency exchanges to operate, bringing the total number of licensed virtual asset firms to seven. This development comes at a time when the price of bitcoin is on the rise, making it an exciting time for the industry.

The newly approved exchanges include Accumulus GBA Technology (Hong Kong), DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI). These companies have obtained virtual asset trading platform (VATP) licenses, signaling a positive step forward for the crypto business in Hong Kong.

Hong Kong has been working to strengthen its virtual asset regulatory regime over the past two years, with the aim of both supporting the growth of the industry and protecting retail investors. Unlike mainland China, which has imposed strict bans on commercial activities involving cryptoassets, Hong Kong is positioning itself as a hub for accessing digital assets such as bitcoin.

Eric Yip, the executive director of intermediaries at the SFC, emphasized the importance of engaging with VATPs’ senior management to ensure regulatory standards are met. The goal is to strike a balance between safeguarding investors’ interests and fostering the development of the virtual asset ecosystem in Hong Kong.

The newly licensed exchanges will need to complete required rectification actions and undergo a vulnerability assessment and penetration test by an independent third party before operating on a restricted scope of business. This process is in place to ensure the security and integrity of the platforms for investors.

It’s worth noting that while nearly 30 companies applied for the license this year, only about a dozen remain as applicants due to stringent regulatory requirements. Some larger platforms, such as OKX and HTX, withdrew their applications earlier this year. This highlights the importance of meeting regulatory standards to operate in the crypto space in Hong Kong.

Overall, the approval of these four new cryptocurrency exchanges is a positive development for the crypto industry in Hong Kong. It underscores the city’s commitment to fostering innovation while upholding regulatory standards to protect investors. With the price of bitcoin soaring and interest in digital assets on the rise, the future looks bright for the industry in Hong Kong.