Cryptocurrency exchange HTX, formerly known as Huobi, has initiated the application process for a crypto license in Hong Kong, signalling its intent to establish operations under the entity HBGL Hong Kong Limited in the region. This move comes amidst a growing number of crypto companies vying for regulatory approval to operate in the lucrative Hong Kong market.
Rising Interest in Hong Kong’s Crypto Landscape
HTX’s application follows a recent trend of crypto exchanges seeking approval from the Securities and Futures Commission (SFC) to operate in Hong Kong. Bybit, another prominent exchange, recently submitted its application, reflecting the heightened interest in the region’s evolving regulatory environment.
Despite this surge in applications, the SFC has only granted licenses to two exchanges so far, namely OSL and HashKey Exchange, raising questions about the efficacy of Hong Kong’s crypto regulatory framework.
Also Read: Crypto.com Joins Bybit, OKX: Rush for Hong Kong SFC Crypto Exchange License
Critiques on Hong Kong’s Crypto Licensing System
While Hong Kong’s regulatory regime for crypto exchanges aims to provide oversight and consumer protection, criticisms have emerged regarding its effectiveness.
Wang Yang, Vice President of the Hong Kong University of Science and Technology, has expressed concerns about the existing licensing system, characterizing it as cumbersome and potentially detrimental to licensed exchanges. He coined the term “Licensed to Be Killed” to underscore the challenges faced by exchanges like OSL, which have experienced significant financial losses post-licensing.
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